Rupee up as dollar slips; importer demand caps rise
28 APR, 2011, 10.43AM IST,REUTERS
MUMBAI: The Indian rupee rose for the second consecutive day on Thursday in tandem with the dollar's global slide but local importers' demand for the U.S. unit put a lid on the rupee's gains.
At 10:26 a.m.(0456 GMT), the partially convertible rupee was at 44.3050/3075 per dollar, 0.3 percent stronger than its previous close of 44.43/44 per dollar.
Intraday, the local unit is seen in a 44.18-44.35 range. "Without doubt there will be pressure on the dollar, but the rupee's rise is unlikely to be sharp," said a senior foreign exchange dealer at a state-owned bank.
"There is a lot of dollar buying from importers and the share market is also volatile."
Indian shares erased opening gains and edged 0.1 percent lower, weighed down by monthly derivatives contracts that expire on the National Stock Exchange.
Gold and silver importers, and domestic oil refiners were the main dollar purchasers, traders said.
U.S. silver futures leapt as much as 6 percent and gold futures reached a record high on Thursday underpinned by the weak dollar.
The dollar sank to a three-year low against a basket of currencies and was at risk of a drop to $1.50 versus the euro, with momentum-driven investors piling on in anticipation U.S. interest rates will be low for a long time.
The common European unit extended gains to $1.4870 after popping above $1.4800 for the first time in 17-months.
The index of the dollar against six major currencies was down 0.79 percent at 72.943 points. It was at 73.711 when the local market closed on Wednesday.
The one-month onshore forward premium was at 25.50 basis points (bps) versus its previous close of 26.25 bps. The three-month was at 80.50 bps versus 81.00 bps and the one-year was at 308.50 bps compared with 313.00 bps.
The one-month offshore non-deliverable forward contracts were quoted at 44.53, 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 the MCX-SX were all at 44.5700, with total volume at $1.33 billion.
At 10:26 a.m.(0456 GMT), the partially convertible rupee was at 44.3050/3075 per dollar, 0.3 percent stronger than its previous close of 44.43/44 per dollar.
Intraday, the local unit is seen in a 44.18-44.35 range. "Without doubt there will be pressure on the dollar, but the rupee's rise is unlikely to be sharp," said a senior foreign exchange dealer at a state-owned bank.
"There is a lot of dollar buying from importers and the share market is also volatile."
Indian shares erased opening gains and edged 0.1 percent lower, weighed down by monthly derivatives contracts that expire on the National Stock Exchange.
Gold and silver importers, and domestic oil refiners were the main dollar purchasers, traders said.
U.S. silver futures leapt as much as 6 percent and gold futures reached a record high on Thursday underpinned by the weak dollar.
The dollar sank to a three-year low against a basket of currencies and was at risk of a drop to $1.50 versus the euro, with momentum-driven investors piling on in anticipation U.S. interest rates will be low for a long time.
The common European unit extended gains to $1.4870 after popping above $1.4800 for the first time in 17-months.
The index of the dollar against six major currencies was down 0.79 percent at 72.943 points. It was at 73.711 when the local market closed on Wednesday.
The one-month onshore forward premium was at 25.50 basis points (bps) versus its previous close of 26.25 bps. The three-month was at 80.50 bps versus 81.00 bps and the one-year was at 308.50 bps compared with 313.00 bps.
The one-month offshore non-deliverable forward contracts were quoted at 44.53, 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 the MCX-SX were all at 44.5700, with total volume at $1.33 billion.
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