Rupee gains as stocks seen higher

Rupee gains as stocks seen higher

Mumbai: The rupee edged higher on Friday on expectations that the local stock market may open firm but gains may be pared following the US dollar’s gains against some currencies such as the Japanese yen.

At 9:08am, the partially convertible rupee was at Rs47.70/71 per US dollar, stronger than Wednesday’s close of Rs48.07/08 per dollar.

The rupee has gained 4.2% in December, helped partly by foreign portfolio inflows of US $395 million in December, but is down 18% in 2008 on equity withdrawals of more than US $13 billion.

The yen dipped against the dollar and the euro on Friday after data showed Japan’s price gains are slowing rapidly, underscoring fears the world’s second largest economy could sink back into deflation next year.

One-month offshore non-deliverable forward contacts were at Rs48.24/48.39, weaker than the onshore rate.