Rupee up; foreign banks sell dollars

Reuters
A cashier counts rupee notes inside a bank in Mumbai August 5, 2013. REUTERS/Danish Siddiqui/Files
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A cashier counts rupee notes inside a bank in Mumbai August 5, 2013. REUTERS/Danish Siddiqui/Files

Reuters Market Eye - The rupee continues to trade with gains due to selling by foreign banks. The pair has been largely range bound in the session in the 62.3150-62.59 band, last at 62.35/36. It closed at 62.60/61 on Monday.

The June quarter current account deficit comes in slightly better than estimates, but largely priced in by the market.

The RBI allows the use of overseas borrowing proceeds for buying shares in divestment by the government in state-run firms.

State-run dealer says selling seen ahead of RBI reference rate fixing, but the pair is likely to remain biddish with 62.20-62.90 range for the day.

Fiscal deficit concerns are back to the fore with the gap reaching nearly 75 percent of the full-year target for the April-August period.

(Reporting by Subhadip Sircar)

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