Rupee trims losses on firm euro, local shares rebound

Rupee trims losses on firm euro, local shares rebound

Mumbai: The Indian rupee pulled back from the near six-week low touched earlier on Monday in tandem with the recovery in local shares and a firm euro.

At 2:02pm, the partially convertible rupee was at 44.92/93, weaker than Friday’s close of 44.735/740, but stronger from its intraday low of 45.0650 -- a level not seen since 28 June.

The euro rose to $1.4349 from $1.4170 at end of rupee trade on Friday, while the index of the dollar against six major currencies was down at 74.181 points from 74.953 previously.

The euro jumped on Monday after the European Central Bank announced steps to ease tensions in the euro zone debt market, while the Group of Seven major industrial nations reaffirmed their vow to support financial market stability and growth.

The local benchmark share index was down just 1 percent after dipping to over 3% to levels not seen in more than a year following Standard & Poor’s downgrade of US sovereign debt rating that triggered a flight from risky assets in regional stock markets.