Rupee stays firm tracking shares; dollar weakness

Rupee stays firm tracking shares; dollar weakness

Mumbai: The Indian rupee continued to trade stronger in afternoon session on Thursday tracking a broadly weaker dollar overseas with some gains in the domestic sharemarket also helping.

At 2:05pm, the partially convertible rupee was at Rs46.82/83 per dollar, 0.2% stronger than Rs46.90/91 at close on Wednesday. It traded in a narrow range of Rs46.7550 to Rs46.83 so far during the session.

Indian shares gained 0.3%, with Reliance Industries and ICICI Bank leading the rise, taking cues from firm Asian markets.

Foreign portfolio investments have reached $12.7 billion so far in 2010, data from the stock regulator shows. Last year, a record $17.5 billion inflows helped the rupee gain 4.7%.

The index of the dollar against six majors was 0.4% lower while most Asian units too rose compared to the dollar.

One-month offshore non-deliverable forward contracts were quoted at Rs47.02, weaker than the onshore spot rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs46.8350, with total traded volume on the two exchanges at about $3.6 billion.