Rupee trades weak tracking stocks, dollar

Rupee trades weak tracking stocks, dollar

Mumbai: The Indian rupee continued to trade weaker in afternoon session on Tuesday, hurt by weak domestic shares and mild gains in the dollar against major units.

At 1:50pm, the partially convertible rupee was at Rs45.96/97 per dollar, weaker than its Monday’s close of Rs45.745/755 when it had climbed as high as Rs45.58 during trade, its strongest since 18 May.

Local shares were trading 0.3% lower, as investors took a breather after a 5.5% rally over three weeks. Infosys Technologies and Sterlite Industries led the decline.

The euro retreated from a one-month high against the dollar on Tuesday, tracking a pullback in the yuan a day after China pledged to allow its currency to trade more freely.

The index of the dollar against six major currencies was largely flat and would be watched for cues, dealers said.

One-month offshore non-deliverable forward contracts were quoted at Rs46.05, weaker than 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 46.0125, with the total traded volume on the two exchanges at about $5.1 billion.