Mumbai: The Indian rupee weakened in afternoon trade on Wednesday following losses in the domestic sharemarket and also weighed down by the dollar’s gains versus major units overseas.
At 1:15pm, the partially convertible rupee was at Rs48.57/58 per dollar, off an early high of 48.28 and weaker than Tuesday’s close of Rs48.42/43.
Indian shares erased gains of as much as 2% and were trading down 1.1% as a weak start for European markets soured sentiment.
The dollar index, a gauge of the US unit’s performance versus six majors, was up 0.1%.
Foreigners have bought a net $1.4 billion worth of local stocks so far in July, taking net purchases in 2009 to almost $6.4 billion and helping the rupee pull back from a record low of 52.2 in early March.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were both quoting at Rs48.5675, with the total traded volume on the two exchanges at about $786 million.