By Suvashree Dey Choudhury
MUMBAI (Reuters) - The rupee ended weak on Thursday, dragged down by month-end importer dollar demand and lower stocks, while uncertainty over Iraq turmoil kept traders cautious.
However, good dollar inflows prevented the unit from sliding sharply despite domestic stocks falling by nearly 1 percent.
Foreign funds have bought shares worth $2.3 billion and debt worth $2.90 billion so far in June, taking total inflows in the year to $9.9 billion and $10.5 billion, respectively.
"Foreign investors are expecting major reforms in the budget and so they are bullish in the long term," said Uday Bhatt, senior manager at UCO Bank in Mumbai.
Some residual dollar inflows related to Reliance Communications' share sale could have come in, dealers said.
Reliance Communications Ltd
The rupee ended at 60.14/60.15 to the dollar after trading in a narrow 60.08-60.20 band compared with Wednesday's close of 60.1250/1350.
Brent crude dropped under $114 a barrel on Thursday as most of Iraq's oil output remained unaffected by the militant insurgency in the country, although worries over the conflict kept a floor under prices.
However, Asian currencies were up with South Korean won leading the gains as a disappointing contraction in the U.S. economy during the first quarter raised expectations that the Federal Reserve may not hurry to increase interest rates.
The BSE Sensex ended lower, led by fall in oil explorers after the government deferred a decision to hike prices of locally produced gas, while the expiry of monthly derivatives contracts also weighed on sentiment.
In the offshore non-deliverable forwards, the one-month contract was at 60.40, while the three-month was at 60.98.
(Editing by Anand Basu)
