Rupee rise trimmed as importers buy dollars

Rupee rise trimmed as importers buy dollars

Mumbai: The Indian rupee trimmed its gains in afternoon session on Monday as oil firms and importers bought dollars after the unit rose to its highest level in three months earlier in the session, dealers said.

At 1:15pm, the partially convertible rupee was at Rs45.68/69 per dollar, after touching Rs45.5850, its strongest since 21 June and above Rs45.835/845 at close on Friday.

Traders said gains in local shares and the dollar’s weakness versus majors were however continuing to support rupee sentiment.

Indian shares were trading up 0.9%, with outsourcers leading the rise, after Asian stocks erased early losses.

The US dollar edged lower in hesitant Asian trade on Monday ahead of a busy week of data and a Federal Reserve meeting where further quantitative easing is likely to be discussed if not implemented.

The index of the dollar against six majors was down 0.4%, while most Asian currencies too were stronger.

The rupee strengthened 1.4% last week in its biggest weekly gain in three months after the central bank hiked key rates more than expected at the mid-quarter policy review.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs45.74, with the total traded volume on the two exchanges at a high $5.2 billion.