Rupee little weaker; month-end demand, stocks hurt

Rupee little weaker; month-end demand, stocks hurt

Mumbai: The Indian rupee continued to trade marginally weaker in afternoon session on Wednesday tracking choppy local shares and weighed by some month-end demand for dollars from refiners and importers.

At 1:25pm, the partially convertible rupee was at Rs46.71/72 per dollar, little weaker than its close of Rs46.66/67 on Tuesday.

Oil is India’s biggest import and refiners are the largest buyers of dollars in the local currency market. Demand for dollars tends to peak at the end of each month, when importers are required to make payments for their imports.

The dollar hit a two-month high against the yen on Wednesday, keeping the firmer tone it has developed recently on shifting sentiment about the outlook for US rates following improving economic data.

Dealers said they were watching the sharemarket for clues on capital flows. Indian shares were choppy and regional peers were largely weak.

One-month offshore non-deliverable forward contracts were quoted at Rs46.70/80, little weaker compared to the onshore spot rate.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at 46.8075 and 46.8050 respectively, with the total traded volume on the two exchanges at about $1.3 billion.