Mumbai: The Indian rupee recovered from its lowest level in six-and-a-half months on Friday helped by dollar selling by exporters but losses in domestic shares and the US unit’s gains against some majors continued to weigh.
At 2:35pm, the partially convertible rupee was at Rs46.94/95 per dollar, weaker than its previous close of Rs46.81/82. Earlier, the rupee had also turned stronger on the day for a brief period rising to the day’s high of Rs46.76.
In early trade, the unit fell to Rs47.33, its lowest since 3 November, 2009, at which point it was down 1.1%.
The index of the dollar against six major currencies was up 0.3%.
One-month offshore non-deliverable forward contracts were at Rs47.17, weaker than the onshore spot rate, suggesting a bearish near-term outlook.
The one-month onshore forward contracts were dealt at Rs47.05, providing a good arbitrage opportunity to investors having access to both markets.
Indian shares trimmed its losses to about 0.4%, after having dropped over 2% early on the back of rising foreign fund withdrawals and sliding world markets.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs46.9325, with the total traded volume on the two exchanges at about $5.9 billion.