Rupee ends flat on state-run banks' dollar sales support, while outflows weigh
By Jaspreet Kalra
MUMBAI, Oct 24 (Reuters) -The Indian rupee ended largely unchanged on Thursday, as likely outflows from local equities prevented it from mirroring the rise in its Asian peers, although state-run banks' dollar sales helped keep the currency above its all-time low.
The rupee INR=IN closed at 84.0775 against the U.S. dollar, compared with its close at 84.08 in the previous session. It hit a record low of 84.0825 earlier in the week.
The dollar index declined 0.2% to 104.1 after touching a near three-month peak on Wednesday, while Asian currencies were mostly stronger on the day.
However, the benchmark Indian equity indices, the BSE Sensex .BSESN and Nifty 50 .NSEI, declined for the fourth consecutive session.
Likely outflows from local stocks kept the rupee under pressure but dollar offers from state-run banks prevented a steeper decline, a trader at a large private bank said.
"Like on most days this week, state-run banks were on offer (on USD/INR) near 84.0775-84.08," most likely on the Reserve Bank of India's (RBI) behalf, the trader added.
The RBI's routine interventions have helped the rupee avert sharp declines despite equity outflows surging to $9 billion for the month and the gains in Treasury yields and the dollar on heightened odds of a second term for Donald Trump as U.S. president.
"Financial markets have been gripped by the recent dollar upmove, which has kept USD/INR above 84," DBS Bank said in a note.
"Looming U.S. elections and markets pricing out aggressive Fed rate cut bets are likely to keep the rupee and INR bonds on soft ground."
The rupee has weakened about 0.3% this month, while the 10-year Indian bond yield has risen 7 basis points to 6.82%.
Reporting by Jaspreet Kalra; Editing by Savio D'Souza
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