Mumbai: The Indian rupee traded lower in afternoon session on Monday after having risen for seven straight weeks, as a see-sawing share market failed to provide clarity on fund flows, while a stronger dollar overseas also hurt.
At 1:50pm, the partially convertible rupee was at Rs50.08/10 per dollar, weaker than Friday’s close of Rs49.81/82.
Indian shares swivelled between gains and losses on bouts of profit booking after a seven-week rally.
Foreigners have been buyers of nearly $1 billion of shares so far in April, trimming their net sales in 2009 to under $380 million. Last year record outflows of over $13 billion had pushed the rupee down over 19%.
Dealers said a stronger dollar overseas also weighed on sentiment. The dollar index, a gauge of the US unit’s performance against majors, was up 0.5%.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at Rs49.97 and Rs49.9675 respectively, with the total traded volume on both exchanges at about $810 million.