Rupee recovers on exporter dollar sales, euro’s bounce

Rupee recovers on exporter dollar sales, euro’s bounce

Mumbai: The rupee reversed intraday losses on Thursday aided by dollar sales of exporters and a marginal recovery in the euro.

At 1:44pm, the partially convertible rupee was at 44.0325/0350 per dollar after weakening to 44.1725 in early trade. It had closed at 44.08/09 on Wednesday.

So far in trade, the unit moved in 44.0250-44.1725 range is expected to hobble in 44.00-44.20 band in rest of day weighed by the negative domestic shares, traders said.

The euro struggled to find fans in Asia on Thursday, due to renewed fears of contagion in Europe, while the US dollar remained on the defensive as Washington showed no signs of progress in getting a debt agreement.

The euro was trading at $1.4389, after touching a low of $1.4332 earlier. It had been $1.4449 at close of rupee trade on Wednesday.

The index of the dollar against six major currencies was down 0.23% at 73.921 points, but above 73.709 when domestic currency markets closed on Wednesday.

Indian shares shed more than 1% on Thursday with no respite seen in the central bank’s tightening trend in the near term as fighting inflation remained the priority.