Rupee near 1-week high as shares erase losses

Rupee near 1-week high as shares erase losses

Mumbai: Rupee continued to trade close to its strongest level in a week on Tuesday afternoon tracking a rebound in the domestic sharemarket with the euro’s gains versus the dollar also cheering.

At 2:05pm, the partially convertible rupee was at 44.96/97 per dollar, close to the day’s high of 44.94, its strongest since 8 December, and above 45.125/135 at close on Monday.

Most Asian currencies were trading stronger. The index of the dollar against six major currencies too was down 0.3% at 79.044 points.

The euro and sterling hit a three-week high against the dollar on Tuesday, extending gains on reported Asian sovereign buying of euros and as the US currency lost more ground on worries about US finances.

Indian shares steadied and were trading up 0.3 percent, after flip-flopping earlier in the day.

One-month offshore non-deliverable forward contracts were quoted at 45.23, 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 45.09, with the total traded volume on the three exchanges at $2.8 billion.