Mumbai: The Indian rupee swayed in line with seesawing shares on Monday afternoon with likely dollar inflows from the NHPC’s initial public offering helping the local unit.
At 1:00pm, the partially convertible rupee was at Rs47.78/79 per dollar, off an early high of Rs47.64 but still stronger than its previous close of Rs47.85/86. On Friday, the rupee had dropped to 48 during trade, its weakest since 31 July.
Dealers said most custodian banks were seen selling dollars which they suspected were the inflows towards the NHPC’s initial public offer which is currently underway.
State utility NHPC Ltd’s up to $1.25 billion IPO was subscribed more than 3 times by late afternoon on Friday in a response that may push the government to offload stakes in other firms.
Indian shares gained as much as 1.7% early before dropping more than 1% on worries that weak monsoon rains will hurt a nascent revival in the domestic economy weighed on investor confidence. Shares were trading up 0.4% at 1:00pm.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at Rs47.8425 and Rs47.8400 respectively, with the total traded volume on the two exchanges at about $815 million.