Thursday, April 03, 2008
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Equity News
Apr 2 2008 8:46AM
Indian rupee seen gaining on stocks, cbank stance

MUMBAI, April 2 (Reuters) - The Indian rupee may gain on Wednesday on expectations the central bank will use currency strength to fight inflation and on hopes of foreign buying of stocks following strong gains in other Asian markets.

* The partially convertible rupee <INR=IN> ended at 40.105/115 per dollar on Monday, weaker than Friday's close of 39.895/905. The rupee market was shut on Tuesday due to end-of-fiscal-year settlements.

* Asian stocks jumped and bonds fell on Wednesday after a Lehman Brothers <LEH.N> securities offering met strong demand, raising hopes that the worst of the credit crisis might be over. [ID:nSP90311].

* Overseas investors have sold a net $3 billion of stocks this year. In 2007, foreigners bought a record $17.4 billion in stocks, helping the rupee climb more than 12 percent. (Reporting by Saikat Chatterjee; Editing by John Mair) (([email protected]; +91 22 6636 9035; Reuters Messaging: [email protected]@reuters.net)) Keywords: MARKETS INDIA RUPEE

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