Rupee up inflows, weak dollar; oil weighs

Rupee up inflows, weak dollar; oil weighs

Mumbai: The rupee remained higher on Thursday on firm local shares and dollar inflows, but demand for the greenback from oil importers is likely to cap gains.

A weaker dollar against other currencies also aided the rupee. The index of the dollar against six major currencies was down 0.37% at 75.837 points.

At 1:25pm, the partially convertible rupee was at 44.6250/6300 per dollar, stronger than its previous close of 44.745/755. So far in the day, it has traded in a range of 44.6150-44.7250.

Shares climbed more than 1% on Thursday and were on track for an eighth consecutive session of gains, boosted by a revival in foreign portfolio investments after a sharp fall in stocks for most of the quarter.

Dollar inflows from overseas corporate borrowings that usually rise towards the end of financial year as companies close their accounts, also supported.

Traders said month-end oil payments are likely to put a lid on the rupee’s gains.

The one-month onshore forward premium was at 24.25 points, down from 25.25, the three-month premium at 77.25 points versus 78.25 and the one-year at 286.75 points from 288.00.

The one-month offshore non-deliverable forward contracts were quoted at 44.81, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 44.8275, with the total volume at about $2.7 billion.