The rupee rose slightly on Thursday, but seesawing stock markets provided little cues on direction of foreign fund flows and the dollar was little changed against other major currencies overseas.
At 10:25am, the partially convertible rupee was at Rs48.79/80 per dollar, marginally above its previous close of Rs48.82/83.
“There is good two-way interest which is just holding the rupee in a tight band,” a dealer with a foreign bank said.
Domestic stock markets opened 0.4% higher but quickly turned negative as mixed Asian shares and sluggish domestic demand kept investors wary.
The euro held steady against the US dollar as investors awaited a rate decision by the European Central Bank (ECB), after falling sharply on Wednesday due to a downgrade of Russia’s sovereign rating.
The dollar index, a gauge of the US currency’s performance against other major’s, was up 0.1%.
Traders are also awaiting inflation data due around noon. A sharp drop in inflation could help the rupee rise slightly, dealers said.
One-month offshore non-deliverable forward contracts were quoting at Rs48.90/49.00, weaker than the onshore spot rate.
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