Mumbai, Jan 19 (UNI) The Rupee eased by about two paise against the US Dollar to close the week ended January 18 at 39.30/31 per dollar on sharp fall in the Indian equity market which was triggered by weak global cues.
The partially convertible Indian currency moved in a range band of 39.25 and 39.37 per dollar during the week amid volatile trading sessions in the Indian markets.
Although the Indian equity market witnessed a strong selling pressure amid sustained high volatility and ended the week with a steep dip, the Rupee seemed to be comparatively less influenced, dealers said adding, ''Earlier the inflows or outflows through FIIs were one of major factors that created impact on Rupee's movement against Dollar, but now it seems to be less affected by the equity market happenings.'' However, the reported intervention by the Reserve Bank of India continued to cap the Rupee's movement beyond 39.25 per dollar throughout the week, dealers said.
Dealers maintained that the local unit was likely to strengthen against the greenback, buoyed by overseas investment flows for Reliance Power's initial public offering this week, but due to weak global cues Rupee could hardly make any upward move against Dollar.
Relliance Power IPO has received 100 billion US Dollar bids from the FIIs in this week.
UNI PP MAZ SM1829