Rupee pares losses as stocks rise over 3%

Rupee pares losses as stocks rise over 3%
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First Published: Fri, Jul 17 2009. 02 48 PM IST
Updated: Fri, Jul 17 2009. 02 48 PM IST
Mumbai: The Indian rupee pared most losses in afternoon trade on Friday as gains of more than 3% in the domestic equity market offset the demand for dollars from refiners and state-run firms.
At 2:27pm, the partially convertible rupee was at rS48.66/67 per dollar, little changed from its Thursday’s close of 48.68/69. The unit has traded in a narrow Rs48.60-48.74 band so far in the session.
Indian shares rose more than 3% on Friday, as upbeat earnings reports from key US firms fuelled a Wall Street rally overnight and lifted sentiment across Asia.
One-month offshore non-deliverable forward rupee contracts were quoting at Rs48.72/82, marginally weaker than the onshore spot rate.
Dealers said the rupee’s weakness earlier in the session was due to dollar demand from oil firms and state-run banks likely for some defence-related payment.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were both quoting at Rs48.6925, with the total traded volume on the two exchanges at about $715 million.
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First Published: Fri, Jul 17 2009. 02 48 PM IST
More Topics: Markets | India | Rupee | Dollar | Currency |