Rupee up on strong local shares; wobbly euro weighs

Rupee up on strong local shares; wobbly euro weighs

Mumbai: The rupee was up in afternoon trade on Tuesday helped by positive sentiment in domestic equities but a choppy euro restricted a further rise.

At 2:03pm, the partially convertible rupee was at 49.15/16 per dollar, stronger than its Monday’s close of 49.445/455 but down from the day’s high of 49.11.

The euro lost ground against the dollar, dropping to near session lows after Spain’s Economy Minister Elena Salgado said there were no plans to extend the euro zone’s bailout fund to two trillion euros on the table.

The euro was at $1.3498, down from the day’s high of $1.3569 and from $1.3523 at end of rupee trade on Monday, while the index of the dollar against six major currencies was at 78.119 points from 78.029 previously.

The local benchmark share index , rose more than 3 percent, snapping a 4-day slide.

Oil is India’s largest import item and oil refiners are the largest buyers of dollars in the local market.

Brent crude rose above $105 as concerns over Europe’s debt crisis eased temporarily and a weaker US dollar sparked buying of dollar-denominated assets.

Markets rose 2% in morning trade on Tuesday, and most Asian currencies were also stronger against the dollar.