Rupee off lows on local shares, euro rise

Rupee off lows on local shares, euro rise

Mumbai: The rupee trimmed intraday losses in afternoon trade on Thursday in tandem with the rebound in local equities and some rise in the euro.

At 2:27pm, the partially convertible rupee was at 47.72/73 per dollar weaker than Wednesday’s close of 47.62/63 but stronger from the day’s low of 47.92.

The euro was at $1.3764, higher from the day’s low of $1.3704 and from $1.3724 at end of rupee trade on Wednesday, while the index of the dollar against six major currencies was at 76.779 points from 76.910 previously.

The local benchmark share index erased all early losses and rose nearly 0.4%.

Further rise in the rupee may be capped as sentiment on the euro is broadly bearish given the new twists emerging from the euro zone debt crisis, traders said.

European Union officials warned the region’s finance ministers on Wednesday of systemic crisis risk due to the sovereign debt crisis, while French President Nicolas Sarkozy and German Chancellor Angela Merkel said they were determined to keep Greece in the euro zone.