Reuters Market Eye - The rupee rises on hopes of inflows related to debt limit auction, say dealers. The pair is at 58.70/71 after rising to 58.92, versus its record closing high of 58.77/78 on Tuesday and remains within touch of an all-time high of 58.98 hit on June 11.
The capital market regulator will auction 420.22 billion rupees in unused limits on Thursday.
However, the success of the auction will remain an issue as foreigners have been heavy sellers of Indian debt, pulling out $4.7 billion over 18 successive sessions.
The rupee's fall and funding of the current account deficit remain key to debt investors.
Interest rate differential with U.S. Treasury yields will also be key to attractiveness of rupee debt.
Some USD selling by state-run banks leading to intermittent intervention talk, but no big buzz in market.
(Reporting by Subhadip Sircar)
