Mumbai: The rupee was off highs in afternoon trade on Tuesday as comfort from euro’s gains was offset by dollar purchases of domestic oil companies and a retreat in local shares. At 2:05pm, the partially convertible rupee was at 45.2775/2800 per dollar, stronger than Friday’s close of 45.35/36, but weaker from the day’s high of 45.1700. The euro was at $1.4381 from $1.4268 at end of local forex trade on Friday, while the index of the dollar against six major currencies was at 74.122, compared with 74.449 points previously. The benchmark Indian share index pared most early gains and was up 0.1% after rising as much as 0.73% in opening trades. Oil is India’s biggest import item and oil refiners are the largest buyers of dollars in the local market. But traders maintain that movement in the euro was the key for cues on rupee direction.

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