Rupee hits 2-week high on firm peers, stocks

Rupee hits 2-week high on firm peers, stocks

Mumbai: The rupee was trading near a two-week high on Tuesday, boosted by gains in local shares and other Asian currencies, but some dollar buying by state-run banks capped the rise.

At 10:00am, the partially convertible rupee was at Rs46.04/045 per dollar, after opening at Rs45.95, a level last seen on 17 February. It had ended at Rs46.085/095 on Friday and the market was closed on Monday for a holiday.

“Firstly, stocks are positive at the moment, so some positive out there. Second, we had a long weekend so pipeline supplies should keep the trend stronger for the rupee," said R.K. Gurumurthy, treasurer at ING Vysya Bank.

The rupee had traded in the narrow range of Rs45.95-46.07.

“We see some buying by state-owned banks, could also be genuine import covers," Gurumurthy said, adding that there was also caution on where the stock market would go from here.

Indian shares were up 1.1%, and most Asian units were stronger compared to the dollar.

One-month offshore non-deliverable forward contracts were at Rs46.08/18, close to the onshore 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 Rs46.1250.