Rupee recoups intraday losses; ECB cues key for Friday

Rupee recoups intraday losses; ECB cues key for Friday

Mumbai: The rupee recouped intraday losses and rose on Thursday as importer demand for dollars faded, local equities turned positive and inflows were robust.

At 2:28pm, the partially convertible rupee was at 44.14/15 per dollar after touching a low of 44.28 earlier in the day. On Wednesday, it had ended at 44.16/17 when it touched 44.1425, its strongest since 15 October.

Foreign funds have bought $2.8 billion of shares since the start of March, after being net sellers in the first two months of the year.

For opening cues on Friday, traders would watch the euro’s movement after the European Central Bank announces rate decision around 5:05pm.

The index of the dollar against six major currencies was up 0.17% at 75.639 points. It had been at 75.571 points at the close of the local forex market on Wednesday.

The one-month onshore forward premium was at 24.50 basis points, down from 26.25 basis points on Wednesday, the three-month was at 79.50 basis points versus 79.75 basis points and the one-year was at 300.50 basis points versus 301.25 basis points.

The one-month offshore non-deliverable forward contracts were quoted at 44.41, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 44.2650, with the total volume at about $4.07 billion.