Rupee reverses gains as stocks drop over 0.5%

Rupee reverses gains as stocks drop over 0.5%

Mumbai: The Indian rupee reversed early gains on Thursday afternoon as the domestic sharemarket extended its fall to more than half a percent while the dollar also edged up against major currencies.

At 1:35pm, the partially convertible rupee was at Rs45.84/85 per dollar after hitting Rs45.76, its strongest since 19 January, and marginally weaker than Rs45.82/83 at close on Wednesday.

The dollar index, a gauge of its performance against six major currencies, was up 0.3%, hurting the rupee.

The euro eased against the dollar on Thursday ahead of a European Central Bank meeting but retained some support as investors encouraged by Greece’s latest austerity measures cut some of their record short positions in the single currency.

The main index, or Sensex, opened marginally higher but soon turned negative, and was trading down about 0.5%.

One-month offshore non-deliverable forward contracts were at Rs45.87/97, little changed from the onshore spot 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 Rs45.91, with the total traded volume on the two exchanges at about $2.9 billion.