Rupee to start up in 2011 tracking firm peers

The rupee is expected to start 2011 on a stronger note tracking gains in other regional peers and firm sharemarkets, but the dollar's firmness versus major currencies is seen limiting a sharp rise.

* The US dollar ended a volatile year on Friday a bit firmer than where it began with investors gearing up for gains in early 2011 on expectations the US economic recovery was gaining momentum.

* Most Asian currencies were stronger than the dollar. However, the index of the dollar against six major currencies was up 0.4%.

* On Friday, the partially convertible rupee closed 2010 at 44.70/71 per dollar, up 0.55% from its Thursday close of 44.95/96, making it the rupee's best single-day rise since December 7.

* The rupee rose 4.1% in 2010, compared with 4.7% in 2009.

* Dealers expect the rupee to start around 44.70 and move in a 44.60-44.80 band during the day. There could be some value buying after the sharp sell-off in the dollar on Friday, they said.

* At 0245 GMT, the MSCI index of Asian shares ex-Japan was trading up 0.5%, while the Nifty India stock futures traded in Singapore were up 0.3%, suggesting a higher start to the local market.