Rupee edges lower, tracks weak shares

Traders expect rupee to hold in 59.20 to 59.40 range

The rupee is trading at 59.30/31 versus its close of 59.20/21 on Monday, tracking losses in the domestic share market and falls in other Asian currencies versus the dollar.

 

Traders will continue to monitor foreign fund flows into the domestic share and debt markets for direction. Foreign investors bought a net $826.9 million in debt markets on Friday, the highest single-day flows since Jan 15.

 

The pair is likely to see some resistance around 59.40 levels, holding it in a 59.20 to 59.40 range for the day, traders say.

 

Local stocks are down 0.4%.

 

Most emerging Asian currencies dipped as US Treasury yields underpinned the dollar, while the Chinese yuan rose to its strongest level in more than three weeks after the central bank's firm guidance.