Mumbai: The rupee strengthened further in afternoon trade on Monday tracking the euro’s gains, strong Asians and exporter dollar-selling, but demand for the US unit from oil companies along-side the fall in local shares clipped rupee’s rise.
At 1:26pm, the partially convertible rupee was at 44.7250/7300 per dollar versus Friday’s close of 44.81/82.
The rupee has moved in Rs 44.6950-44.7775 range so far in the day and was likely to stay in 44.65-44.80 band, traders said.
The euro was at $1.4623 and the index of the dollar against six major currencies was up 0.01 percent at 73.790 points.
The euro hovered near a one-month high on Monday, bolstered by news that Greece may receive a vital slice of aid in July to avoid a default, and some traders said a widening gap between US and euro-zone interest rates could push the euro up to $1.50 in coming weeks.
Indian shares skidded 0.6% on Monday as fresh worries of a slowing global economy and a likely government decision this week on fuel price increase kept investors wary.
Oil is India’s largest import item and refiners are the biggest buyers of dollars in the local forex market.