At 1:20 pm, the partially convertible rupee was at Rs47.62/65 per dollar, stronger than its previous close of Rs47.70/71
Reuters
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Mumbai: Rupee reversed losses and rose in afternoon trade on Thursday as domestic shares gained fuelling hopes for capital inflows, but a sharper rise was prevented by the dollar’s gains versus other major currencies overseas.
At 1:20 pm, the partially convertible rupee was at Rs47.62/65 per dollar, off an early low of Rs48.10, and stronger than its previous close of Rs47.70/71.
The domestic equities shrugged off a shaky start and rose 1.4% on Thursday, as investors covered short positions on the last day of monthly derivatives contracts.
The yen tumbled across the board on Thursday, hurt by talk of Japanese retail demand for overseas assets, while the dollar rose 1% against the Japanese unit, aided in part by Moody’s affirming its top credit rating for the United States.
Dealers said month-end dollar demand from oil refiners was also likely to limit the upside for the rupee.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at 47.63 and 47.6350 respectively, with the total traded volume on both exchanges at about $1 billion.
