Mumbai: The rupee erased most of its intraday gains on Monday dragged by a strong dollar demand from local oil refiners and retreat in the euro which offset comfort from positive domestic equities.
At 2:35pm, the partially convertible rupee was at 49.97/99 to a dollar after touching a high of 49.80 earlier. The unit had closed at 50.02/03 on Friday when it had dipped to a 30-month low of 50.32.
The euro was at $1.3850, higher than $1.3808 at end of rupee trade on Friday, but lower from the day’s high of $1.3953.
The index of the dollar against six major currencies was at 76.444 points from 76.700 previously while the local benchmark share index was up 1%.
Oil is India’s biggest import item and domestic oil refiners are the largest purchasers of dollars in the local currency market.