Mumbai: The Indian rupee edged higher in afternoon trade on Friday as domestic shares shed most of their early losses while some weakness in the dollar against major currencies also helped.
At 1pm, the partially convertible rupee was at Rs46.43/44 per dollar, above its previous close of Rs46.49/50. It has traded in a band of Rs46.4250 to Rs46.60 so far in the day.
The index of the dollar against six majors was down 0.08%, while local shares were trading just 0.26% lower. They had been down as much as 0.8% earlier.
Dealers said the rupee was closely mirroring moves in the share market and the dollar. “Month-end dollar buying by importers and subdued global risk sentiment is likely to keep the INR offered today. However, some bit of USD weakness could place a cap on the USD/INR pair,” economists at HDFC Bank said in a daily note.
“We expect the INR to trade in a tight range with a slight depreciation bias,” they added.The rupee seesawed on Friday mirroring the dollar’s moves versus major currencies, while losses in domestic shares maintained a downward bias on the Indian unit.