Mumbai: The Indian rupee trimmed its fall on Tuesday afternoon, closely mirroring moves in the local sharemarket with the dollar’s losses against major currencies also helping sentiment.
At 2:30pm, the partially convertible rupee was at Rs44.40/41 per dollar, recovering from the day’s low of 44.48 reached in early trade. It had closed Monday at Rs44.39/40.
Dealers said there were good inflows from initial public offerings by companies, but import payments that tend to peak towards the end of each month weighed on the market, preventing further gains.
Oil is India’s biggest import and refiners are the largest buyers of dollars in the local currency market.
Companies ranging from utilities such as Jindal Power, SJVN Ltd and miner Coal India Ltd and construction company Jaypee Infratech have lined up their equity issuances.
Indian shares were trading down just about 0.1%.
The index of the dollar against six major currencies was down 0.1% and dealers said they would watch the dollar’s moves for further direction.
One-month offshore non-deliverable forward contracts were at Rs44.49, 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 were both at Rs44.3950, with the total traded volume on the two exchanges at about $4.6 billion.