Rupee largely steady; stock gains help

Rupee largely steady; stock gains help

Mumbai: The Indian rupee further recovered from fresh one-week lows touched early on Friday helped by an over-1% rise in local shares but a stronger dollar overseas limited a sharper rise.

At 2:30pm, the partially convertible rupee was at Rs46.52/53 per dollar after hitting Rs46.75, which was its weakest since 13 November. It had closed at Rs46.6850/6950 in the previous session.

The dollar and yen on Friday kept their broad gains made the previous day but investor selling of higher-yielding currencies slowed as profit-booking on their rallies of the past few months eased up.

Indian shares reversed early losses and rose 1% on Friday afternoon, led by Reliance Industries , as investor sentiment improved with European markets edging higher.

Foreign portfolio investments of nearly $15.4 billion in 2009, have helped the rupee recover from a record low of 52.2 touched in early March.

One-month offshore non-deliverable forward contracts were quoting at Rs46.58, marginally weaker than the onshore spot rate.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs46.5475 and Rs46.55 respectively, with the total traded volume on the two exchanges at about $2.4 billion.