Rupee lower on weak shares, Asian units

Rupee lower on weak shares, Asian units

Mumbai: The Indian rupee continued to trade close to three-week lows touched earlier in the session on Tuesday as lower domestic shares and broadly weaker regional peers weighed on sentiment.

At 2pm, the partially convertible rupee was at Rs46.90/91 per dollar, off a low of Rs46.95, its lowest since 7 October and below its previous close of Rs46.645/655.

A rebound in the US dollar touched off a wave of profit-taking in Asian currencies on Tuesday, with the high-yielding Indonesian rupiah falling as much as 1%.

The rupee briefly trimmed its fall after the Reserve Bank of India left key rates unchanged at its second quarter monetary policy review earlier in the day.

Domestic shares were trading down 1.7%, in line with the fall in global markets on renewed concerns about economic recovery.

One-month offshore non-deliverable forwards were quoting at Rs46.91/47.01, marginally weaker than the onshore spot rate.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs46.90 and Rs46.8975 respectively, with the total traded volume on the two exchanges at about $2.2 billion.