Mumbai: The Indian rupee pared some of its gains on Thursday afternoon as importers bought the US unit, but gains in domestic shares continued to help sentiment.
At 1:30pm, the partially convertible rupee was at Rs51.71/74 per dollar, off a high of Rs51.5250, but still stronger than Monday’s close of Rs51.85/87. Markets were shut on Tuesday and Wednesday for local holidays.
Indian shares rose more than 3%, bucking weak trends in other Asian markets, as investors played catch-up with Wall Street gains after a two-day market holiday.
Inflation and factory output data were largely in line with expectations and thus, failed to have any large impact on the rupee, dealers said.
India’s industrial output fell 0.5% in January from a year earlier, inflation rose 2.43% at the end of February from a year earlier, government data showed.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at 51.8475 and 51.8500 respectively, with the total traded volume on both exchanges at about $450 million.