Rupee in thin range on choppy stock market

Rupee in thin range on choppy stock market

Mumbai: The Indian rupee moved in a narrow range but traded weaker from the previous close on Monday afternoon, with a choppy sharemarket offering little direction.

At 1:25pm the partially convertible rupee was at Rs46.81/82 per dollar, steady from morning levels, but lower than Friday’s close of Rs46.72/73. The unit had hit Rs46.97 during trade on Thursday, its lowest since 27 November.

India’s benchmark BSE share index traded weaker. Foreign fund flows into stocks are a key driver of the rupee. Until early December, foreigners were buyers of a net $16 billion of equities, after having sold more than a net $13 billion last year.

One-month offshore non-deliverable forward contracts were quoting at Rs46.87/97, little weaker than the onshore spot rate.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at Rs46.8450 respectively.