Rupee continues to trade stronger; shares weigh

Rupee continues to trade stronger; shares weigh

Mumbai: The Indian rupee continued to trade higher in afternoon session on Wednesday, boosted by the dollar’s weakness versus major currencies overseas, but losses in shares pulled the local unit off four-month highs.

At 12:55pm, the partially convertible rupee was at Rs45.53/54 per dollar, off a high of Rs45.44, its strongest since 14 May, but still above its Rs45.67/68 close on Tuesday. The unit has traded in a band of Rs45.44-45.5950 so far in the day.

The dollar extended losses on Wednesday, hitting a six-month low against a currency basket on selling after the US Federal Reserve hinted the previous day it could take more monetary easing measures.

Most Asian currencies were stronger compared to the dollar.

Shares ran out of steam after climbing to 32-month highs for the eighth successive session on Wednesday, strengthening the case for consolidation following a 11 percent rally over three weeks.

One-month offshore non-deliverable forward contracts were quoted at Rs45.66, 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 Rs45.5725, with the total traded volume on the three exchanges at an average $4.4 billion.