Rupee off highs but firm on stocks, euro rise

MUMBAI: The Indian rupee was off highs, but remained strong in afternoon trade on Wednesday, as firm domestic stocks and gains in the euro offset dollar demand from oil importing companies.

At 1:23 p.m., the partially convertible rupee was at 45.63/64 per dollar, off day's high of 45.54 touched so far in trade and 0.3 percent stronger than its previous close of 45.755/765. The unit had weakened to 46.01 on Monday, its lowest since Nov. 30.

* Dealers expect the rupee to move in the 45.40-45.70 range intraday.

* Indian shares climbed more than 1 percent on Wednesday as stronger Asian markets spurred investors to grab bargains, a day after the main index had slid to its lowest close in five months.

* The dollar marked its lowest level in nearly three months on Wednesday as a string of robust economic data and easing concerns over Egypt took the steam out of safe-haven buying in the currency.

* However, demand for the greenback from oil refiners pulled the rupee off its day's highs.

* Foreign funds were net sellers of $1.4 billion worth of shares in January pushing the rupee down 2.6 percent. Last year, a record $29.3 billion of fund inflows had helped the rupee gain 4.1 percent.

* The dollar index, a measure of the greenback's performance against six major currencies, was down 0.10 percent at 77.006 points.

* One-month offshore non-deliverable forward contracts were quoted at 45.85, 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 Exch! ange wer e at 45.8300, 45.8325 and 45.8350 respectively, with the total traded volume at $3 billion.

Comments

Popular posts from this blog

India Infoline's Q3 net profit up 12.7 pc at Rs 67 cr

Ambuja Cements Q3 net rises 7%

Posco looking to set up steel plant in Karnataka