Rupee weak on share losses; dollar gains hurt

Rupee weak on share losses; dollar gains hurt

Mumbai: The Indian rupee continued to trade weaker in afternoon session on Thursday tracking losses in domestic shares while gains in the dollar versus majors also hurt sentiment.

At 2:00pm, the partially convertible rupee was at Rs45.64/65 per dollar, off the day’s low of Rs45.72 but still below 45.58/59 at close on Wednesday when it had risen during trade to Rs45.44, its strongest since 14 May.

Dealers said the rupee was pulled off the day’s lows as a large private sector bank had some corporate dollar flows and was selling in the market.

The dollar steadied on Thursday after sharp selling the previous day when the US Federal Reserve hinted at more easing, pushing Treasury yields down and keeping the greenback pinned near a five-month low on the euro.

The index of the dollar against six majors was up 0.3%, while Asian currencies were trading mixed. Markets in Japan, China, Hong Kong and South Korea are closed for a holiday.

The main stock index was trading down 0.5% after a recent steep run up.

One-month offshore non-deliverable forward contracts were quoted at Rs45.90, weaker than the onshore spot rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were all at Rs45.6650, with the total traded volume on the three exchanges at $5.3 billion.