Mumbai: The Indian rupee continued to trade stronger in afternoon session on Thursday boosted by over 1% rise in local shares which raised inflows expectations. Losses in the dollar versus majors also underpinned sentiment.
At 2:30pm, the partially convertible rupee was at Rs48.38/39 per dollar, stronger than its Wednesday’s close of Rs48.51/52. In early trade, the rupee had gained to Rs48.29, its highest since 14 August.
Shares were trading up about a percent, trimming some of its rise in choppy trade after the benchmark index more than doubled in just six months and rose successively for five straight days.
Foreigners have bought a net $8.6 billion worth of shares so far in 2009, helping the rupee climb back from record lows of Rs52.2 hit in early March.
The dollar hovered close to its lowest in almost a year against a basket of major currencies on Thursday as firmer share and commodity prices undermined flows into the lower-yielding US currency.
In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs48.4450 and Rs48.4475 respectively, with the total traded volume on the two exchanges at about $1.1 billion.