Rupee see-saws; Coal India refunds weigh

Rupee see-saws; Coal India refunds weigh

Mumbai: The Indian rupee continued to flip-flop on Monday afternoon as Coal India’s refund-related dollar demand offset hefty gains in local shares and the dollar’s losses versus majors.

The government will raise close to $3.5 billion from the sale of a 10% stake in Coal India, the world’s largest coal miner, the initial public offering of which was 15 times covered. Its shares will begin trading on 4 November, and the refunds towards excess subscription are expected this week.

At 2:42pm, the partially convertible rupee was at 44.42/43 per dollar, little changed compared with its 44.43/44 at close last Friday. It has so far traded in a range of 44.35-44.48 in the day.

India’s broader was trading up 1.8% while the main shareindex was up 1.7% when it shut for trade at around noon due to some technical glitch.

The index of the dollar against six major currencies was down 0.3%. Most Asian currencies were stronger compared with the dollar.

Traders were also awaiting the central bank’s quarterly policy review on Tuesday where it is expected to raise rates for the sixth time this year to batten down stubbornly high inflation pressures in the fast-growing economy, a Reuters poll showed.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were all at 44.64, with the total traded volume on the three exchanges at about $4.3 billion.