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Rupee at 1-week high supported by euro, shares

Rupee at 1-week high supported by euro, shares
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First Published: Fri, May 28 2010. 06 43 PM IST
Updated: Fri, May 28 2010. 06 43 PM IST
Mumbai: The rupee rose to its highest in a week on Friday, as risk aversion over the euro zone debt crisis receded, bolstering dollar supplies from local exporters while a rally in domestic shares aided sentiment.
The partially convertible rupee ended at 46.35/36 per dollar, off an intraday peak of 46.32, its strongest since 20 May, and more than 2% stronger than Wednesday’s close of 47.29/30. It rose 1.3% on the week.
The market was closed on Thursday for a local holiday.
The euro gained on month-end fixing demand for euros and ahead of a long weekend in both the US and UK markets.
The dollar index against six majors was down about 0.1%.
“The euro’s rise led to dollar selling from exporters from the beginning of trade. The undertone is bullish and I see a range of 46.20 to 46.50 for Monday,” said a dealer with a foreign bank. Traders said a rise in domestic share prices also supported sentiment.
The BSE benchmark Sensex posted its biggest weekly gain since early March, as it rose 1.2% on the day, tracking a rally in global markets and China’s assurance that Europe will remain a major investment market.
The People’s Bank of China said a Financial Times report that the State Administration of Foreign Exchange (SAFE) was concerned about its exposure to euro zone debt was groundless, lifting world stocks.
One-month offshore non-deliverable forward contracts were quoted at 46.46, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX ended at 46.5050 and 46.51 respectively, with the total traded volume on the two exchanges at about $7.8 billion.
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First Published: Fri, May 28 2010. 06 43 PM IST
More Topics: Markets | India | Rupee | Currency | Dollar |