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Rupee Gives Up Most Losses As Foreign Banks Sell Dollars

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The rupee has given up most losses on the day as foreign banks sell dollars on behalf of custodial clients, three dealers say. Pair at 62.99/00 vs Monday's close of 62.83/84 after rising to 63.6450 early in session.
Dealers also cite hopes of good inflows related to banks bringing in dollar deposits from overseas Indians.
Foreign banks are offering upfront financing for wealthy non-resident Indians (NRIs) of 90 per cent to set up dollar deposits in India following various RBI incentives, including cheap dollar/rupee swap rates and more relaxed terms on 3-5 year dollar deposits, private banking sources told Reuters.
The dollar edged lower on Tuesday, but traded in a tight range before a two-day US Federal Reserve meeting which is expected to result in a scaling back of its monetary stimulus.