Rupee extends fall on share slide; dollar hurts

Rupee extends fall on share slide; dollar hurts

Mumbai: The Indian rupee extended losses in the afternoon session on Monday tracking weak domestic shares, which raised concerns about sustainance of foreign capital inflows, while a broadly strong dollar also hurt.

At 3:25pm, the partially convertible rupee was at 44.38/39 per dollar, weaker than 44.20/21 at close on Thursday. The Indian forex market was closed on Friday for the Diwali holiday.

The euro extended broad falls on Monday, falling more than one percent on the day versus the yen and close to one percent against the dollar, pressured by renewed concern about fiscal problems in peripheral euro zone countries.

The index of the dollar against six major currencies was 0.5% higher.

Traders said weak shares also added to the rupee’s woes. The main share index was down 0.7%, tracking weak Asian share markets and on some amout of profit-taking.

One-month offshore non-deliverable forward contracts were at 44.61, weaker compared to the onshore spot rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were at 44.54, with the total traded volume on the three exchanges at about $5 billion.