Rupee rises 1.4 pct on large offshore unwinding
* Foreign flows into stocks also help (Updates to close)
MUMBAI, Dec 11 (Reuters) - The Indian rupee posted its biggest single-day gain in more than a month on Thursday as large unwinding of long dollar positions in the non-deliverable forwards prompted banks to sell dollars in the spot market.
The partially convertible rupeeclosed at 48.33/34 per dollar, off a high of 48.25, which was its strongest since Nov. 11, and above its previous close of 49.03/04.
At its close, the rupee gained 1.4 percent, which was its best since a 2 percent rise on Nov. 4.
"It was more due to some unwinding of the NDF positions," said Paresh Nayar, chief dealer at Development Credit Bank.
The market was also underpinned by foreign inflows to the stock market, he said.
One-month offshore non-deliverable forward contracts PNDF were quoting at 48.37/52, just a shade weaker than the onshore spot rate in stark contrast to the largely lower rates seen in recent days, indicating a change in sentiment for the unit in the near term.
* Foreign flows into stocks also help (Updates to close)
MUMBAI, Dec 11 (Reuters) - The Indian rupee posted its biggest single-day gain in more than a month on Thursday as large unwinding of long dollar positions in the non-deliverable forwards prompted banks to sell dollars in the spot market.
The partially convertible rupee
At its close, the rupee gained 1.4 percent, which was its best since a 2 percent rise on Nov. 4.
"It was more due to some unwinding of the NDF positions," said Paresh Nayar, chief dealer at Development Credit Bank.
The market was also underpinned by foreign inflows to the stock market, he said.
One-month offshore non-deliverable forward contracts PNDF were quoting at 48.37/52, just a shade weaker than the onshore spot rate in stark contrast to the largely lower rates seen in recent days, indicating a change in sentiment for the unit in the near term.