The rupee seesawed on Monday as domestic share gains and the dollar's broad losses versus majors were offset by dollar demand from foreign banks for Coal India's share sale-related refunds.
The government will raise close to $3.5 billion from the sale of a 10-per cent stake in Coal India, the world's largest coal miner, the initial public offering of which was 15 times covered. Its shares will begin trading on November 4, and the refunds towards excess subscription are expected this week.
At 11:20 am, the partially convertible rupee was at 44.42/43 per dollar, little changed compared with its 44.43/44 close last Friday. It has so far traded in a range of 44.35-44.48 in the day.
"There is not much impact seen so far due to share gains or weak dollar, it is more flows dependant. We are seeing bids related to the Coal India refund and rupee should trade in a range of 44.32-44.55 today," said Vikas Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.
The BSE Sensex was trading up 1.7 per cent with energy conglomerate Reliance Industries climbing on strong quarterly earnings.
So far this year, foreign funds have purchased domestic shares worth a record $24.6 billion, helping the rupee gain 4.7 per cent. Last year, inflows of $17.5 billion had helped the rupee gain 4.7 per cent on year.
The index of the dollar against six major currencies was down 0.5 per cent. Most Asian currencies were stronger compared with the dollar.
Traders were also awaiting the central bank's quarterly policy review on Tuesday where it is expected to raise rates for the sixth time this year to batten down stubbornly high inflation pressures in the fast-growing economy, a Reuters poll showed.
One-month offshore non-deliverable forward contracts were at 44.61, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were all at 44.64, with the total traded volume on the three exchanges at about $1.9 billion.
