Rupee firm on local shares, dollar inflows, Asian peers

Rupee firm on local shares, dollar inflows, Asian peers

Mumbai: The rupee stayed stronger in afternoon trades on Thursday drawing comfort from strong local shares and robust dollar inflows.

Gains seen in most Asian currencies against the dollar also added to the rupee’s strength.

At 1:46 pm, the partially convertible rupee was at 44.7500/7600 per dollar as against Wednesday’s close of 44.83/84 per dollar, its highest level since 4 January.

So far in the day, the rupee has traded in a range of 44.7350-44.8900.

Shares firmed 0.8% on Thursday extending gains into a third day on the back of firmer Asian markets, but traders said geopolitical tensions in the Middle East were a concern.

The euro’s losses against the dollar and still high global crude oil prices may contain the rupee’s gains, dealers said.

The index of the dollar against six major currencies was up 0.20% at 75.951 points. At the end of local trade on Wednesday, it was at 75.636 points.

The one-month offshore non-deliverable forward contracts were quoted 45.01, 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 44.8050, with the total volume at about $4.59 billion.