Mumbai: The Indian rupee traded stronger in the afternoon session on Thursday, tracking a firm domestic sharemarket and stronger regional peers but dollar buying by oil firms limited gains.
At 3:34pm, the partially convertible rupee was at Rs46.43/44 per dollar, stronger than its close of Rs46.49/50 on Wednesday. Earlier the rupee rose to Rs46.3750, its highest since 4 February.
Financial markets will be shut on Friday for a holiday.
The South Korean won and Singapore dollar rose alongside most Asian currencies on Thursday as investors anticipated a rescue package for debt-laden Greece.
Indian shares ended up 1.4% led by gains in ICICI Bank and Reliance Industries and tracking higher Asian equities.
Dealers said there was some oil-related buying seen in the market which was keeping the rupee from rising further. Oil is India’s biggest import and refiners are the largest buyers of the US unit in the local currency market.
One-month offshore non-deliverable forward contracts were quoting at Rs46.44/54, little weaker compared to the onshore spot rate.
In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.4650, with the total traded volume on the two exchanges at about $2.8 billion.