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Rupee up on stronger euro, higher shares

Rupee up on stronger euro, higher shares
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First Published: Fri, May 27 2011. 10 45 AM IST
Updated: Fri, May 27 2011. 10 45 AM IST
Mumbai: The rupee strengthened on Friday supported by gains in the euro and firmer shares, but import payments mostly for oil kept a lid on the rise, traders said.
At 10:05am, the partially convertible rupee was at Rs 45.2525/2600 per dollar, 0.1% stronger than its previous close of 45.30/31.
“The euro and other currencies are sharply higher and the equity sentiment is slightly improving,” a dealer with a private bank said.
He forecast the rupee to move in a 45.12-45.30 range, with persistent demand for dollars from importers keeping a lid on the gains.
Foreign fund outflows from the stock market have slowed in recent sessions, data showed. The main stock index was up 0.9 percent in tandem with firmer Asian markets.
The dollar slid to a record low against the Swiss franc on Friday, with market players citing talk of dollar selling by model funds.
The index of the dollar against six major currencies was down 0.65 percent at 75.064 points. When the rupee market closed on Thursday, the index was at 75.577 points.
The euro was at $1.4266, versus $1.4171 at the close of local forex trade on Thursday.
Brent crude rose on Friday, hovering above $115 a barrel, as a softer dollar and persistent Middle East tensions tempered demand worries triggered by euro zone debt concerns and weak U.S. economic data.
Oil is India’s biggest import item and oil refiners are the largest buyers of dollar in the local market.
The one-month onshore forward premium was at 22 points, higher than 21.50 points at Thursday’s close. The three-month was at 71 points versus 69.50 and the one-year was at 268 points against 263.
The one-month offshore non-deliverable forward contracts were quoted at 45.41, weaker than the onshore spot rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were at 45.2325, 45.2350 and 45.2325 respectively. Total volume was at $1.6 billion.
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First Published: Fri, May 27 2011. 10 45 AM IST
More Topics: Markets | India | Rupee | Currency | Foreign Exchange |