Mumbai: The Indian rupee trimmed early losses on Wednesday afternoon as gains in shares renewed expectations of capital inflows, but month-end dollar demand from refiners and importers prevented a further rise.
At 2:00pm, the partially convertible rupee was at Rs48.77/78 per dollar, off a low of 48.88 but still a little weaker than its previous close of 48.75/76.
Oil refiners are the largest buyers of dollars in the domestic currency market with their demand tending to peak at the end of each month when they make payments for their imports.
Indian shares were trading up 0.8%.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at Rs48.78 and Rs48.7825 respectively, with the total traded volume on the two exchanges at about $1.2 billion.