The rupee recovered from early losses on Tuesday to end the session with marginal gains as the government's auction of mobile airwaves attracted strong demand, including from bidders such as Vodafone, offsetting concerns about global risk aversion.
The government received $7 billion worth of total bids on Monday, the first day of the auction and looked set to top its minimum target of raising $1.8 billion initially.
Foreign companies like Vodafone and Telenor would have to convert their dollars to rupees if they win licences, with the first tranche needing to be paid within 10 days of allocation.
The rupee also benefited as Asian currencies firmed up later in the session on Tuesday as the region is seen better placed than other emerging markets to face the fallout of any global risk aversion due to the U.S. Federal Reserve's stimulus tapering and concerns of a slowdown in China.
The partially convertible rupee closed at 62.5250/5350 per dollar compared with Monday's 62.56/57, after initially falling to a session low of 62.81.
The government received $7 billion worth of total bids on Monday, the first day of the auction and looked set to top its minimum target of raising $1.8 billion initially.
Foreign companies like Vodafone and Telenor would have to convert their dollars to rupees if they win licences, with the first tranche needing to be paid within 10 days of allocation.
The rupee also benefited as Asian currencies firmed up later in the session on Tuesday as the region is seen better placed than other emerging markets to face the fallout of any global risk aversion due to the U.S. Federal Reserve's stimulus tapering and concerns of a slowdown in China.
The partially convertible rupee closed at 62.5250/5350 per dollar compared with Monday's 62.56/57, after initially falling to a session low of 62.81.