Rupee seen up on IPO flows; wary of RBI

MUMBAI: The rupee is likely to strengthen on Monday, buoyed by overseas investment flows slated for Reliance Power's initial public offering this week, though RBI intervention could limit gains, dealers said. The partially convertible rupee ended at 39.280/285 per dollar on Friday, unchanged from the previous close, and within striking distance of a decade-high of 39.16 hit in November. Reliance Power is set to raise up to $3 billion in an offering that opens on Tuesday, which would be India's biggest-ever IPO. Dealers expect a net of about $1 billion to flow in from foreign funds, which should give the rupee a boost. Suspected central bank intervention blocked attempts to test beyond 39.20 last week, and dealers said the central bank has bought around $3 billion so far this year capping the currency.