Rupee erases gains; shares, dollar eyed

Rupee erases gains; shares, dollar eyed

Mumbai: The Indian rupee erased early gains and was trading largely steady on Monday afternoon, closely mirroring moves in the local stocks, but the dollar’s losses versus major units may limit a sharp fall, dealers said.

At 2:18pm, the partially convertible rupee was at Rs46.89/90 per dollar, unchanged from Friday’s close.

Indian shares were trading almost flat after briefly turning negative. They had risen more than 1% in early trade boosted by a rise in financials.

The index of the dollar against six majors was down 0.2% and would be watched for further clues, dealers said.

The yen rose against the dollar on Monday after the Bank of Japan failed to signal aggressive measures to curb yen strength at an emergency meeting, choosing only to expanded a fixed-rate fund supply scheme.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs47.0825, with the total traded volume on the two exchanges at a low of $2.4 billion.