Rupee recovers losses as stocks off lows

Rupee recovers losses as stocks off lows

Mumbai: The Indian rupee recovered from early losses and was nearly steady on Friday afternoon as stocks were off their intraday lows and the dollar weakened against majors.

At 12:50pm, the partially convertible rupee was at 45.20/21 per dollar after falling to 45.37 earlier in the day, compared with close of 45.22/23 on Thursday, when it had touched 45.58, its lowest since 24 September.

Exporters’ dollar sales also supported the rupee, dealers said. They expect the rupee to move in the 45.05-45.35 band.

Indian shares were down 0.27% after falling as much as 1% so far on Friday.

Dealers also expect the rupee to strengthen once the stock market regulator announces an auction for the enhanced foreign investment limit in debt.

The government had on 23 September 23 doubled the cap on foreign investment in government bonds to $10 billion, and raised that on corporate bonds by $5 billion to $20 billion. The revised limits have not yet been auctioned.

The euro dipped on Friday but held onto most of its recent gains on budding hopes that Ireland is near a deal to shore up its banks and budget deficit, while the Australian dollar slipped as Chinese shares came under pressure.

The dollar index, which tracks the greenback’s performance against a basket of major currencies, was down 0.30% at 78.384. It had touched a seven-week high of 79.461 on Tuesday.