Mumbai: The rupee gained in opening trades on Monday, helped by gains in Asian shares and a drop in oil prices but weakness in the currency’s offshore market could limit the rise.
At 9:13 a.m. the partially convertible rupee was at 42.82/83 per dollar, stronger than Friday’s close of 42.87/88. It hit a 15-month low of 43.50 last week
The one-month non-deliverable forward was at $43.2/43.3, weaker than the onshore in close of 42.87/88 on Friday.
The weaker offshore rate provides artbitrage opportunities for traders to buy dollars in the local market and sell offshore.
Oil was trading above $144 a barrel, below a record high of $147.27 hit on Friday.
Asian stocks edged up, the dollar gained anf government bonds fell on Monday after Washington proposed an emergency plan to rescue the top US mortgage finance companies, offering to buy shares if necessary.