Rupee off 1-month low as shares climb

Rupee off 1-month low as shares climb

Mumbai: The rupee fell to a one-month low on Monday tailing a weak euro and lower Asian peers, before a rally in local shares and dollar sales by exporters helped pull it off the trough.

At 11:06am, the partially convertible rupee was at 45.09/10 per dollar, 0.2% weaker than Friday’s close of 44.99/45.00. In early trade, it had touched 45.14 -- a level not seen since 27 May.

“There is some support coming in from exporters around 45.10 and equities are also positive," said a dealer with a foreign bank.

Many traders expect the rupee to remain subdued between 45.05 and 45.15 through the day.

The benchmark share index rose more than 1%, led by state-run oil companies that cheered an increase in diesel prices, which would ease the pressure on their margins.

After market hours on Friday, the government raised diesel prices by about 9%, a politically unpopular move that will add to inflationary pressure but also eases the government’s subsidy burden.

The euro hovered just above a record low versus the Swiss franc on Monday and fell on the dollar, staying under pressure ahead of this week’s decision by the Greek parliament on whether to back austerity reforms demanded by international lenders.

The euro was at $1.4111, while the index of the dollar against six major currencies was up 0.36% at 75.934 points.

The euro had been at $1.4221 and the index at 75.360 points when the local currency market closed on Friday.

For a snapshot of Asian currencies, see

The one-month onshore forward premium was at 21.75 points versus 22.25 on Friday. The three-month was at 71 points from 72.25 and the one-year was at 240 points from 245.50.

One-month offshore non-deliverable forward contracts were quoted at 45.3, 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 United Stock Exchange and on the MCX-SX were all at 45.1050. The total volume was at $3.29 billion.