Mumbai: The Indian rupee was largely steady in afternoon trade on Friday in tandem with local stocks while losses in the dollar versus majors overseas continued to underpin sentiment.
At 2:50pm, the partially convertible rupee was at 48.23/24 per dollar, stronger than its close of 48.35/36 on Thursday, when the unit dropped as low as 48.58, its weakest since 22 July.
Indian shares were trading 1.2% higher as hopes for a global economic recovery were revived by a set of solid corporate results overseas that boosted markets across Asia following a Wall Street rally overnight.
Dealers said sharper gains were prevented due to some dollar demand from oil refiners to settle month-end bills. Refiners are the largest buyers of dollars in the domestic currency market.
The dollar slipped on Friday as an ongoing rise in global stock markets helped to spur demand for currencies considered to be higher-risk, while investors awaited a reading of US economic growth later in the day.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at 48.3350 and 48.3375 respectively, with the total traded volume on the two exchanges at about $673 million.