\nThe partially convertible rupee closed at 61.4925\/5000 per dollar compared with 61.55\/56 on Tuesday.
\nTraders also said volumes in the foreign exchange market were impacted and were down to just a little over half the usual volumes on back of the strike at most banks.
\nIndian shares touched record highs for the second time this week as rate-sensitive stocks such as Axis Bank rose on hopes easing inflation would prompt the central bank to cut interest rates earlier than expected. Movements in the dollar versus majors and other Asian units will continue to be monitored for near-term direction.
\nIn the offshore non-deliverable forwards, the one-month contract was at 61.74\/84, while the three-month was at 62.33\/43.
\nForeign institutional investors have been buying both shares and debt in recent weeks, helping stocks climb to record highs for a second time this week while the benchmark 10-year bond yield dropped to a 15-month low.
\nSo far in November, foreign funds have bought shares worth $1.36 billion and debt worth $597 million, taking total inflows so far this year to $15.1 billion and $23.1 billion in the two asset classes respectively.
\nTraders will take opening cues for Thursday from the retail inflation data which will be released after market hours amid rising expectations that the central bank may opt for earlier-than-anticipated rate cuts if inflation falls faster.
\nA survey of economists and analysts predicted consumer price inflation cooled to an annual 5.80 per cent in October, a record-low, dragged by a sharp drop in food and oil prices.
\n\u201cGood retail inflation should be positive for the rupee, but since state banks are buying dollars at every level, I don\u2019t see much appreciation for the rupee,\u201d said Paresh Nayar, head of fixed income and foreign exchange trading at First Rand Bank.
\n\u201cSixty-one remains a good support for the pair in the near term. It appears the RBI doesn\u2019t want the INR to strengthen so as to remain competitive on the exports front,\u201d he added. <\/p>\n","protected":false},"excerpt":{"rendered":"