Rupee extends rally to new 15-month high

Rupee extends rally to new 15-month high

Mumbai: The Indian rupee extended its rally on Thursday afternoon soaring to new 15-month highs backed by large dollar sales by foreign banks, but buying of the US unit by importers and a weak sharemarket prevented a sharper rise.

At 2:25pm, the partially convertible rupee was trading at Rs45.69/70 per dollar after hitting Rs45.55 earlier, its strongest since 23 September, 2008, and above its previous close of Rs45.85/86.

“There is large dollar selling by foreign banks, almost everyone is a seller today. Only some oil buying is seen," a senior dealer with a foreign bank said.

One-month offshore non-deliverable forward contracts were quoted at Rs45.62/72, marginally stronger than the onshore spot rate.

Domestic shares were trading down 0.6 percent as resistance crept in after they scaled a 22-month peak in the previous session and on muted Asian cues.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs45.6875 and Rs45.6850 respectively, with the total traded volume on the two exchanges at about $4.4 billion.