Rupee off 1-week high on month-end dollar demand

Rupee off 1-week high on month-end dollar demand

Mumbai: The Indian rupee pared some of its early gains Monday afternoon on month-end dollar buying by oil refiners, traders said.

At 3:10pm, the partially convertible rupee was at Rs44.395/405 per dollar, moving away from Rs44.28, its highest since 15 April.

The Indian unit was still stronger from Friday’s close of Rs44.435/445, helped by gains in the domestic shares.

Traders said the local unit also suffered as the dollar strengthened against majors. The index of the dollar against six majors was up 0.35%.

“There seems to be a strong resistance for rupee around Rs44.20 level. Also, foreigners are not very enthusiastic to invest here at current levels," treasurer at a private bank said.

Companies ranging from fitness chain Talwarkars, construction company Jaypee Infratech and property firm Nitesh Estates are at various stages of raising money via initial public offerings.

The main stock index was up 0.3%, with No. 2 private-sector lender HDFC Bank racing to an all-time high after forecast-beating quarterly results.

One-month offshore non-deliverable forward contracts were quoted at 44.45, slightly 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 on MCX-SX were both at 44.41, with the total traded volume on the two exchanges at about $6.7 billion.