Rupee stronger as dollar inflows cheer

Rupee stronger as dollar inflows cheer

Mumbai: The rupee continued to trade stronger in the afternoon session on Tuesday on the back of some dollar inflows but demand for the US unit from oil importers prevented a sharper rise.

At 1:40pm, the partially convertible rupee was at 45.3000/3050 per dollar, stronger than Monday’s close of 45.475/4850.

Dealers expect the rupee to trade in a range of 45.30-45.50 during the day.

Foreign institutional investors bought shares worth $49.17 million on Friday. This was the second straight session when foreign funds bought shares after being net sellers in the previous five sessions. They have pulled out a net $1.3 billion this year until 4 February.

Oil is India’s biggest import and refiners are the largest buyers of dollars in the domestic currency market.

The dollar index, a measure of the greenback’s performance against six major currencies, was down 0.30% at 77.791 points.

One-month offshore non-deliverable forward contracts were quoted at 45.45, 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 at 45.4450, 45.4450 and 45.4700 respectively, with the total volume traded on the three exchanges at $2.41 billion.