Mumbai: The rupee stayed firm on Wednesday afternoon supported by strong regional peers and on hope of big dollar inflows through next week’s auction of foreign institutional investors’ (FII) debt limit.
The Securities and Exchange Board of India (Sebi) will on 15 March auction unutilised FII limits in long-term government and corporate debt.
JPMorgan, in a note on Tuesday, said there may be “decent” interest from FIIs at the auction.
Volumes in the forex market were very low due to a technical glitch in the Thomson Reuters trading system, traders said.
At 2:28pm, the partially convertible rupee was at Rs 45.0000/0100 per dollar, stronger than Tuesday’s close of Rs 45.0750/0850.
The Thai baht hit a near two-month high against the dollar on Wednesday and the Korean won hit its highest in more than two weeks.
Weakness in the euro along with choppy domestic shares may limit gains in the rupee, dealers said.
The index of the dollar against six major currencies was up 0.12% at 76.891 points. It had been at 76.681 points when the rupee market closed on Tuesday.
The one-month onshore forward premiums were trading at 26.00 points, marginally down from 26.25 points on Tuesday, while the three- month premiums were sharply higher at 79.25 points from 76.75 points on Tuesday.
The one-year was also higher at 276.75 points versus 275.75 points at previous close.
The one-month offshore non-deliverable forward contracts were quoted at 45.26, 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 on the United Stock Exchange were all at 45.1675, with the total traded volume at $2.92 billion.