Rupee higher on stocks gain, strong Asian markets

Rupee higher on stocks gain, strong Asian markets

Mumbai: The Indian rupee continued to trade higher in afternoon session on Tuesday as domestic shares rose more than 1%, while gains in other Asian units versus the dollar also underpinned sentiment.

At 1pm, the partially convertible rupee was at Rs48.59/60 per dollar, largely unchanged from morning levels, but stronger than Rs48.74/75 at close on Monday, when it had dropped to Rs48.80 during trade, its weakest since 4 September.

Shares were trading up 1.3%, with financial issues such as State Bank of India and ICICI Bank among the gainers on hopes for easier accounting rules for bond holdings.

Foreign portfolio flows into and out of local stocks set the direction for the rupee. So far this year, net inflows of $8.8 billion have helped the rupee recover from its record low of Rs52.2 in early March.

Dealers said they were also watching the dollar’s moves versus majors for cues. The index of the dollar versus six majors was marginally higher.

Most Asian currencies were trading higher against the dollar.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both at Rs48.64, with the total traded volume on the two exchanges at about $965 million.