Indian rupee reversed losses and rose in afternoon trade on Thursday as domestic shares gained fuelling hopes for capital inflows, but a sharper rise was prevented by the dollar's gains versus other majors overseas.
* At 1:20 p.m., the partially convertible rupee was at 47.62/65 per dollar, off an early low of 48.10, and stronger than its previous close of 47.70/71.
* Indian shares .BSESN shrugged off a shaky start and rose 1.4 percent on Thursday, as investors covered short positions on the last day of monthly derivatives contracts. [.BO]
* The yen tumbled across the board on Thursday, hurt by talk of Japanese retail demand for overseas assets, while the dollar rose 1 percent against the Japanese unit, aided in part by Moody's affirming its top credit rating for the United States. [USD/]
* Dealers said month-end dollar demand from refiners was also likely to limit the upside for the rupee.
* In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at 47.63 and 47.6350 respectively, with the total traded volume on both exchanges at about $1 billion.
