Rupee down on choppy local shares, euro fall

Rupee down on choppy local shares, euro fall

Mumbai: The rupee was weak in afternoon trades on Thursday as sentiment was dented by volatility in domestic equities and a retreat in the euro.

At 2:59pm, the partially convertible rupee was at 49.11/12 per dollar, weaker from Wednesday’s close of 48.95/96.

The unit moved in the 48.9000-49.1450 band so far in the day and traders said it could fall to 49.20 in rest of the session.

The local benchmark share index was down 0.3%. The euro was $1.3744, lower from $1.3768 at end of the rupee trade on Wednesday.

The index of the dollar against six major currencies was at 77.166 points, higher than 77.017 points previously.

The euro slipped against the dollar on Thursday after the European Central Bank warned about the impact on the currency and banks of private sector involvement in the region’s debt crisis.

The one-month onshore forward premium on the rupee was at 20.25 points from 19.25 on Wednesday, the three-month premium was steady at 57.00 points and the one-year premium was 125.50 points, from 120.00.

The one-month offshore non-deliverable forward contracts were quoted at 48.92, a tad stronger than the spot rupee rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange was at and those on the United Stock Exchange and the MCX-SX were at 49.03. The total traded volume on the three exchanges was $873 million.