Mumbai: The Indian rupee continued to trade largely steady near a fresh one-week high on Monday afternoon tracking gains in the domestic sharemarket and also boosted by the dollar’s losses against major currencies.
By 1:05pm, the partially convertible rupee was at Rs46.60/61 per dollar, after hitting 46.56, its highest since 3 June and 0.5% stronger than Friday’s close of Rs46.84/85.
The performance of the stock market would also be crucial for direction as foreign fund flows influence the rupee’s fortunes, dealers said.
Indian shares were trading up nearly 1% with Reliance Industries leading the rise, taking cues from strong Asian markets.
Traders were also watching the dollar’s moves versus majors for direction. The index of the dollar against six major currencies was 0.7% lower. Most regional currencies were stronger compared to the dollar.
The euro rose on Monday after a burst of short-covering lifted the single currency above $1.22 and further away from a four-year low, but traders were wary about chasing gains and expected its downtrend to continue.
One-month offshore non-deliverable forward contracts were quoted at Rs46.71, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were at Rs46.6850 and Rs46.6825 respectively, with the total traded volume on the two exchanges at about $980 million.