Rupee firm on local shares, euro’s gains

Rupee firm on local shares, euro’s gains

Mumbai: The rupee was up in afternoon trade on Monday supported by firm local shares and the euro’s rise on view Europe’s banks will be protected from any negative impact of the region’s debt crisis.

Volumes were, however, thin in the domestic foreign exchange market due to holidays in Japan and the United States, traders said.

At 2:03pm, the partially convertible rupee was at 49.0775/0825, stronger from Friday’s close of 49.1550/1650 and had touched 49.04 in early trade.

The euro rose 1% on the day versus the dollar while other riskier currencies rallied as risk appetite was boosted by promises from French and German leaders to make plans to recapitalise euro zone banks.

The euro was at $1.3535, compared with $1.3437 when the rupee closed on Friday. The index of the dollar against six major currencies was down 0.88% at 78.028 points. It had been at 78.471 points on Friday.

The local benchmark share index was more than 1.5% higher.