Rupee pares early gains on weak euro

Rupee pares early gains on weak euro

Mumbai: The rupee gave up early gains and was largely steady in afternoon trade on Thursday as the euro slipped against the dollar, and oil importers stepped up demand for the greenback.

At 2:25pm, the partially convertible rupee was at 45.0250/0350 per dollar, almost steady from Wednesday’s close of 45.055/065. It has traded in a range of 44.9250-45.0500 so far in the day.

The euro dipped against the dollar on Thursday on uncertainty about the implications of a possible Greek debt restructuring, with traders saying policymaker opposition might lead to further declines.

The index of the dollar against six major currencies was up 0.06% at 75.512 points. It was at 75.382 when the rupee market closed on Wednesday.

Asian currencies were also stronger compared to the dollar.

Oil prices were little changed on Thursday, holding on to gains after rebounding the previous day on data showing a drop in crude stockpiles in the United States, the world’s biggest consumer.

Oil is India’s biggest import item and oil importers are the largest buyers of dollars in the domestic market.