Rupee steady on stocks; month-end demand caps rise

Rupee steady on stocks; month-end demand caps rise

Mumbai: The Indian rupee continued to trade largely steady in afternoon trade on Thursday as modest gains in domestic shares and other regional peers helped, but month-end dollar demand from refiners capped the upside.

At 12:25pm, the partially convertible rupee was at Rs44.58/59 per dollar, stronger than 44.64/65 at close on Wednesday, when it had hit an intra-day low of Rs44.7650, its lowest since 5 April.

Indian shares were trading up 0.5% with Reliance Industries and Housing Development Finance Corp leading the rise, taking cues from overnight gains on Wall Street.

Most Asian currencies rose versus the dollar.

Oil is India’s biggest import and refiners are the largest buyers of dollars in the local currency market with demand tending to peak at the end of each month, when they are required to make payments for imports.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both quoting at Rs44.69, with the total traded volume on the two exchanges at about $2.6 billion.