Mumbai: The Indian rupee trimmed gains in afternoon trade on Monday as importers bought dollars to take advantage of its rise to a one-month high in early trade.
At 2:35pm, the partially convertible rupee was at Rs45.69/70 per dollar, off its high of Rs45.58, its strongest since 18 May but still stronger than its Friday’s close of Rs46.16/17.
The Indian unit rose in the morning on the Chinese central bank’s late Saturday statement that it was ready to make the yuan more flexible, signalling its readiness to scrap its 23-month-old currency peg.
The Australian dollar and the euro jumped to their highest levels in about a month against the dollar on Monday after China allowed the yuan to rise to a post-revaluation high, boosting confidence in the global economy.
Indian shares rose were trading up about 1.9%, rising to their highest level in more than two months with commodities among the gainers after China’s pledge encouraged risk appetite.
The index of the dollar against six major currencies was down 0.3% and would be watched for cues, dealers said.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 45.74, with the total traded volume on the two exchanges at about $5.1 billion.