On Thursday, as the dollar buying by importers increased, the Indian rupee started to fall down. The positive push by local share gains and strong Asian currencies was outweighed by dollar's strength. The descending pressure on the rupee is expected to continue as the dealers do not expect big foreign fund inflows today.

On Wednesday, the initial public offering for Coal India has been closed for institutional investors. A dealer at a foreign bank commented that today the rupee is expected to remain in a tight band as there is no local trigger.

They are keeping an eye on euro-dollar movement. A dealer at a private bank said that the big events of this week were over.

He further said that they don't expect rupee to fall further as more public issues are lined up. In coming months, some of the big companies who are planning to sale shares are Indian Oil Corp and State-run Power Grid Corp, which are expected to bring more foreign fund inflows.

When Treasury Secretary Tim Geithner commented that the major currencies were in alignment, the dollar rose on Thursday.