Rupee ranged; dollar gains offset shares rise

Rupee ranged; dollar gains offset shares rise

Mumbai: The Indian rupee was trading marginally weaker on Thursday afternoon and held in a tight band as a broad rise in the dollar versus major currencies offset mild gains in the local sharemarket.

At 1:36pm, the partially convertible rupee was at Rs46.19/20 per dollar, 0.1% weaker than Rs46.16/17 at close on Wednesday. It has traded in a range of Rs46.1850-46.26 so far in the session.

Shares were trading up 0.2% after having risen 0.4% earlier, supported by gains in Asian stocks, with outsourcers and energy major Reliance Industries leading the gains.

The dollar steadied in Asian trade after it enjoyed a rare rally the previous day when US data beat expectations and sparked a bout of short-covering, although the overall mood remains bearish ahead of a key payrolls report.

The index of the dollar against six majors was 0.1% higher and traders said they would continue to watch the dollar’s moves for direction.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs46.34, with the total traded volume on the two exchanges at about $1.9 billion.