Rupee hovers near day's low as stocks down
MUMBAI: The rupee hovered near its day's lows due to weak stocks and dwindling dollar inflows in afternoon trades on Friday.
At 1:05 p.m., the partially convertible rupee was at 45.76/77 per dollar, 0.4 percent weaker than Thursday's close of 45.57/58. So far, the unit has moved in the 45.65-45.77 band.
In the absence of any positive trigger, dealers expect the rupee to move with a weakening bias in rest of the trade.
Oil importers' dollar demand and strong dollar overseas added to the fall in the Indian unit. Oil is India's biggest import and refiners are the largest buyers of dollars in the domestic currency market.
Indian shares declined more than 1 percent to their lowest level in four-and-a-half months on Friday, and were set to post their third weekly fall in four, with little respite seen to a reversal in foreign fund outflows.
The yen recouped some of the losses it made after Standard & Poor's cut Japan's credit rating by a notch, while the euro slipped from two-month highs on Friday as players took profits from its recent rally.
The dollar index, a measure of the greenback's performance against six major currencies, was up 0.19 percent at 77.877 points
Foreign funds were net sellers of more than $755 million worth of shares this month until Tuesday. Last year, investments had reached a record $29.3 billion.
One-month offshore non-deliverable forward contracts were quoted at 45.97, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were at 45.9825, 45.9800 and 45.9800, respectively. Total traded volume! was $2. 7 billion.
At 1:05 p.m., the partially convertible rupee was at 45.76/77 per dollar, 0.4 percent weaker than Thursday's close of 45.57/58. So far, the unit has moved in the 45.65-45.77 band.
In the absence of any positive trigger, dealers expect the rupee to move with a weakening bias in rest of the trade.
Oil importers' dollar demand and strong dollar overseas added to the fall in the Indian unit. Oil is India's biggest import and refiners are the largest buyers of dollars in the domestic currency market.
Indian shares declined more than 1 percent to their lowest level in four-and-a-half months on Friday, and were set to post their third weekly fall in four, with little respite seen to a reversal in foreign fund outflows.
The yen recouped some of the losses it made after Standard & Poor's cut Japan's credit rating by a notch, while the euro slipped from two-month highs on Friday as players took profits from its recent rally.
The dollar index, a measure of the greenback's performance against six major currencies, was up 0.19 percent at 77.877 points
Foreign funds were net sellers of more than $755 million worth of shares this month until Tuesday. Last year, investments had reached a record $29.3 billion.
One-month offshore non-deliverable forward contracts were quoted at 45.97, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were at 45.9825, 45.9800 and 45.9800, respectively. Total traded volume! was $2. 7 billion.
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