Rupee firm but oil forms’ dollar need limits rise

Rupee firm but oil forms’ dollar need limits rise

MMumbai: The rupee was firm in afternoon trades on Tuesday in tandem with the euro’s gains and positive local shares, but dollar demand from oil companies limited the rise.

At 1:29pm, the partially convertible rupee was at 44.70/71 per dollar, stronger from last close of 44.755/765.

The rupee has so far moved in the 44.700-44.825 range, and is expected to be in 44.70-44.85 band in the remaining trade.

The euro was trading at $1.4660, after touching a low of $1.4564. The unit had been at $1.4607 when the domestic market closed on Monday.

The euro held firm below its one-month high on Tuesday, though further climbs after a two-week rally may require clear signals from the European Central Bank later in the week that it plans to raise interest rates next month.

The index of the dollar against six major currencies was down 0.41% at 73.651 points.

Markets pared early losses on Tuesday as energy major Reliance Industries climbed, but the market faced headwinds to push ahead after a spate of data showed slowing growth.

Oil is India’s biggest import item and domestic oil refiners are largest dollar purchasers in local forex market.