Rupee down on weaker euro, local shares

Rupee down on weaker euro, local shares
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First Published: Fri, May 14 2010. 03 19 PM IST
Updated: Fri, May 14 2010. 03 19 PM IST
Mumbai: The Indian rupee gave up intraday gains to ease on Friday afternoon, as the euro stayed near a 14-month trough against the dollar and a fall in local share prices underpinned sentiment.
At 3:11pm, the partially convertible rupee was at Rs45.23/24 per dollar, off an intraday peak of Rs45.04 and weaker than Thursday’s close of Rs45.08/09. It had opened weaker at Rs45.21.
The euro remained under pressure against the dollar on worries that rigorous fiscal tightening and austerity measures in Europe would hurt recovery efforts. The dollar index against six majors traded about 0.7% higher.
A fall in local shares also hit sentiment. The benchmark BSE share index traded 1.4% weaker, taking cues from weak European markets.
Foreign funds have so far in 2010 bought shares worth a net $6 billion, helping the rupee rise 3.2%. In 2009, the rupee had firmed 4.7% on record portfolio inflows of $17.5 billion.
Official data on Friday showed wholesale prices rose 9.59% from a year earlier, a tad above the median forecast for a 9.5 percent rise and compared with March’s pace of 9.9%.
One-month offshore non-deliverable forward contracts were at Rs45.29/39, 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 both traded at Rs45.2350 with the total traded volume on the two exchanges at $5.4 billion.
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First Published: Fri, May 14 2010. 03 19 PM IST
More Topics: Markets | India | Rupee | Currency | Dollar |