Rupee off highs; defence bids kick in

Reuters Market Eye - The rupee is off highs on dollar bids from state-run banks for defence purchases of the government, other importers. The USD/INR pair is at 61.30/31, off 61.05 highs. The unit closed at 61.655/665 per dollar on Tuesday.

Weakness in stocks also hurting the USD/INR pair, says a dealer. The BSE Sensex is down 0.3 percent.

Pair opened a bit lower tracking global dollar weakness after U.S. nonfarm payrolls data.

Foreign funds extend buying for a 13th session, provisional buyers of $128.9 million on Tuesday, exchange data showed.

The dollar wobbled near two-year low against the euro on Wednesday after disappointing U.S. jobs data cemented expectations that the Federal Reserve will keep its stimulus in place at least until early next year.

(Reporting by Subhadip Sircar)

View the original article here