Mumbai: The Indian rupee bounced off near two-week lows on Wednesday afternoon as the dollar’s slide against major currencies supported the local unit ,but losses in shares prevented further gains.
At 3pm, the partially convertible rupee was at Rs46.64/65 per dollar, off an early low of Rs46.87, which was its weakest since 27 November, and marginally above Tuesday’s close of Rs46.68/69.
The dollar index, a gauge of the US unit’s performance versus six majors, was down 0.5%.
Traders were closely watching the sharemarket for cues. The main share index was trading 0.8% lower, limiting the rupee’s upside.
Foreign buying of about $16 billion worth of local equities this year up to early December has helped the rupee rise about 11.5% from its record low of Rs52.2 touched in early March. Last year outflows of more than $13 billion had pushed the rupee down by a fifth.
In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs46.7350 and Rs46.72 respectively, with the total traded volume on the two exchanges at about $3.6 billion.