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Rupee nudges up from 2-month low, but resistance seen

Rupee nudges up from 2-month low, but resistance seen
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First Published: Tue, May 24 2011. 01 13 PM IST
Updated: Tue, May 24 2011. 01 13 PM IST
Mumbai: The rupee clawed up on Tuesday from a two-month low in the previous session, but there was little conviction due to the euro’s woes and small gains in shares.
At 10:47am, the partially convertible rupee was at Rs 45.16/17 per dollar, stronger than 45.23/24 at close on Monday when it had dropped during trade to 45.3225, a level not seen since 15 March.
“Let’s see how the euro plays out,” said Sudarshana Bhat, head of forex trading at state-run Corporation Bank. “Dollar demand is bit lower than Monday but 45.10 will show strong resistance for the rupee and 45.30-35 is a good support level.”
The dollar held firm near a seven-week high against a basket of currencies in Asia and the euro remained on the defensive amid worries that the euro zone’s debt crisis could spread to heavyweights like Spain that had been considered safe from contagion.
The euro was at $1.4074 and the index of the dollar against six major currencies was at 76.036 points.
On Monday, when the local market closed the euro had been at $1.4017 and the dollar index at 76.231 points.
Exporters, who had cashed in dollars at around 45.30 on Monday, would again step up sales if the rupee approached that level, traders said.
Shares were trading up 0.5 %, a day after sliding 1.8%.
The one-month onshore forward premium was at 19 points versus 21 last close. The three-month was at 60.25 points against 63.50 and the one-year was at 225.75 points against 236.75.
The one-month offshore non-deliverable forward contracts were quoted at 45.37, weaker than the onshore spot rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 45.2200, with the total volume at $1.85 billion.
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First Published: Tue, May 24 2011. 01 13 PM IST
More Topics: Markets | India | Rupee | Currency | Foreign Exchange |