Rupee up but month-end importer demand caps rise

Rupee up but month-end importer demand caps rise

Mumbai: The Indian rupee was little moved in afternoon trade on Monday as firm shares and broad weakness in the dollar continued to support the local unit, but some month-end dollar demand prevented further gains.

At 1:55pm, the partially convertible rupee was at Rs46.45/46, 0.3% stronger than Rs46.60/61 at close on Friday.

Dealers said there was good demand from importers and oil refiners to meet month-end import committments. Oil is India’s largest import and refiners are the biggest buyers of dollars in the domestic currency market.

Shares were trading up about 0.9% led by gains in energy major Reliance Industries Ltd after it made an offer to buy a controlling interest in US-based bankrupt petrochemicals company LyondellBasell Industries.

The US dollar drifted lower against the euro and other major currencies on Monday, losing its shine to a surging gold price and more dovish comments from US central bankers.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs46.4575 and Rs46.4550 respectively, with the total traded volume on the two exchanges at about $1.6 billion.