ET:Rupee trims gains on local shares, oil cos' dlr demand
MUMBAI: The rupee erased most of its early gains on Tuesday as local shares turned choppy and domestic oil companies stepped up their demand for dollars, but a slightly positive euro underpinned the local unit.
At 10:44 a.m. (0514 GMT), the partially convertible rupee was at 45.01/02 per dollar only marginally higher than Monday's close of 45.03/04. The unit had risen to 44.96 in opening trades.
"We are awaiting some clear cues on where the local equities are headed as well the euro," said a dealer with large private-sector bank.
"Until then we are likely to see sluggish dollar-rupee market with the rupee in thin range."
Most traders expect the rupee to move between 44.95 and 45.15 band during the day.
The euro inched higher on Tuesday, but stalled just below chart resistance, as investors waited to see if Greece's parliament will approve austerity steps that are a precondition for international aid that the country needs to avoid a default.
The Greek parliamentary ballot on the framework austerity package is expected on Wednesday, with lawmakers then due to vote on Thursday on a bill containing specific steps to implement it.
The euro was $1.4287 versus $1.4209 at the end of local forex trade on Monday, while the index of the dollar gainst six major currencies was down 0.12 percent at 75.302 points. It was at 75.544 points when domestic currency trade shut on Monday.
The benchmark Indian share index turned negative after rising over 0.6 percent in early trade on Tuesday, while brent traded above $106 a barrel, rising for a second straight session.
The one-month onshore forward premium was at 20.25 points versus 21 on Monday. The three-month was at 70.25 points from 71 and the one-year was at 240.25 points versus 243.
One-month offshore non-deliverable forward contracts were quoted at 45.19, weaker than the onshore spot rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange , the United Stock Exchange and on the MCX-SX were all 45.0200. The total volume was at $3.05 billion.
