Rupee rallies as dollar slips, stocks gain helps

Rupee rallies as dollar slips, stocks gain helps

Mumbai: The Indian rupee extended gains in afternoon trade on Tuesday boosted by gains in the domestic sharemarket and tracking the dollar’s drop against major currencies overseas.

At 2:16pm, the partially convertible rupee was at Rs46.36/37 per dollar, stronger than its Monday’s close of Rs46.50/52.

The index of the dollar against six major currencies was down 0.3%.

Shares extended gains to 1.3% helped by robust November sales from leading auto makers and better-than-expected GDP data for the September quarter.

Foreign portfolio buying of more than $15 billion of stocks this year has helped the rupee rise more than 12% from a record low of 52.2 in early March.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.4250 each, with the total traded volume on the two exchanges at about $2.2 billion.