Mumbai: The Indian rupee came off fresh one-week lows on Thursday afternoon as the domestic sharemarket shrugged off a shaky start and rose close to 1% while dollar’s drop versus major currencies also helped.
At 1:40pm, the partially convertible rupee was at Rs48.47/48 per dollar, a little weaker than Wednesday’s close of Rs48.42/43. In early deals, the rupee fell to Rs48.58, its weakest since 22 July.
Local stocks pared most of its early fall and rose as investors covered their short positions just ahead of the expiry of the monthly derivative contracts.
Foreigners have been net buyers of $6.9 billion worth of shares this year, following net sales of more than $13 billion in 2008.
The dollar index, a gauge of the US unit’s performance versus six majors, was down 0.4%.
One-month offshore non-deliverable forward contracts were quoting at Rs48.50/60, little weaker than the onshore spot rate.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at Rs48.5375 and Rs48.54 respectively, with the total traded volume on the two exchanges at about $720 million.