Rupee stays strong on share gains; dollar eyed

Rupee stays strong on share gains; dollar eyed

Mumbai: The Indian rupee continued to trade stronger on Wednesday afternoon helped by gains in the domestic sharemarket and the dollar’s drop against some major currencies.

At 2:30pm, the partially convertible rupee was at Rs44.41/42 per dollar, stronger than its previous close of Rs44.52/53.

The Reserve Bank of India hiked its key interest rates by 25 basis points each at a scheduled review on Tuesday, in line with market expectations, and called for a “calibrated" pace of monetary tightening.

The main share index was trading slightly higher, after snapping a 5-day fall the previous day and joining Asian peers as signs of a global recovery in corporate earnings lifted investor appetite for riskier assets.

The index of the dollar against six major currencies was down 0.04%.

One-month offshore non-deliverable forward contracts were at Rs44.46, largely in line with the onshore spot rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs44.4550, with the total traded volume on the two exchanges at about $1.8 billion.