Rupee off 1-month high on importer dollar demand

Rupee off 1-month high on importer dollar demand

Mumbai: The Indian rupee came off fresh one-month peak in afternoon trade on Thursday as domestic shares pared most of their early gains and importers bought dollars after the rupee rose past the Rs48 per dollar mark in early trade.

At 2:20pm, the partially convertible rupee was at Rs48.08/09, stronger than its previous close of Rs48.24/25. In early deals, it rose to Rs47.92, its strongest since 11 August. The rupee is up 0.9% so far this week, taking its rise this month to 1.7%.

Shares pared gains to trade up 0.3% as some resistance came in, after a sharp run up to 16-month highs.

Dealers said broad weakness in the dollar was helping the rupee, but demand from importers was limiting further gains.

The euro climbed to a one-year high against the dollar on Thursday as investors encouraged by growing evidence of a global recovery shifted funds away from the greenback into riskier currencies and assets.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at Rs48.11 each, with the total traded volume on the two exchanges at about an average $2 billion.