Mumbai: The Indian rupee continued to trade stronger in afternoon trade on Friday tracking the dollar’s weakness against major currencies overseas and helped by some modest gains in the domestic sharemarket.
At 3:32pm, the partially convertible rupee was at Rs44.40/41 per dollar, stronger than Rs44.5150/5250 at close on Thursday. On Wednesday, the unit hit an intra-day low of 44.7650, its lowest since 5 April.
The index of the dollar against six major currencies was down 0.4%.
Indian shares were on track to post their third straight monthly gain and were trading up 0.7% mirroring the rise in global stocks, with financials leading gains.
Investors remained uneasy about the outlook for Greece even as the debt-stricken country took steps to secure an aid package.
Dealers said there was some month-end demand in the market which was limiting the rupee’s upside.
Oil is India’s biggest import and refiners are the largest buyers of dollars in the local currency market with their demand tending to peak at the end of each month, when they are required to make payments for their imports.
One-month offshore non-deliverable forward contracts were quoting at 44.48, 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 quoted at 44.5075, with the total traded volume on the two exchanges at about $5.1 billion.