Mumbai: The Indian rupee recovered from a near two-week low in afternoon trade on Monday, helped by some dollar selling by corporates and exporters, who sought to take advantage of the unit’s early fall, traders said.
At 1:42pm, the partially convertible rupee was at Rs47.21/22 per dollar, off a low of Rs47.47 - its weakest since 26 May - but still below its previous close of Rs46.84/85.
Dealers said exporters and some other corporates with dollar holdings were selling after the sharp fall, but there was downward pressure from weak shares and a strong dollar overseas.
Indian shares were trading down more than 2%, with financials leading the fall, as world stocks slid after weak US jobs data and Hungary’s debt woes slammed investors and cut down risk appetite.
Most Asian currencies dropped compared to the dollar. The index of the dollar against six major currencies was up 0.3% and was also weighing on the rupee.
One-month offshore non-deliverable forward contracts were quoted at Rs47.45, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 47.3475, with the total traded volume on the two exchanges at about $4.2 billion.