Rupee at 3-week low; shares, euro losses weigh

Rupee at 3-week low; shares, euro losses weigh

Mumbai: The rupee weakened to its lowest in three weeks on Monday weighed by losses in domestic shares and the euro, with dollar demand from oil companies also piling pressure.

At 10:15am, the partially convertible rupee was at 45.0050/0100 per dollar after weakening to 45.02, its lowest since 31 May. It had closed at 44.86/87 on Friday.

“Bidding from oil companies is also keeping rupee lower and I see it in the range of 44.50-45.30 in the near term," said Vikas Chittiprolu, a senior forex dealer with Andhra Bank.

Indian shares extended losses to more than 3% on nervousness caused by market talk of changes to tax treaty with Mauritius.

The euro edged lower on Monday, giving back some of the gains it made late last week, as euro zone finance ministers postponed a final decision on extending the next tranche of Greek bailout funds to early July.

The euro was trading at $1.4225, weaker than $1.4269 at the time of the local market close on Friday.

The one-month onshore forward premium was at 23 points versus 24 at last close. The three-month was at 71.75 points from 74.50 and the one-year was at 239.75 points from 251.

One-month offshore non-deliverable forward contracts were quoted at 45.16, 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 45.0625. The total volume was at $1.72 billion.