At 1 pm, the partially convertible rupee was at 46.63/64 per dollar, stronger than its previous close
Mumbai: The rupee continued to trade stronger in afternoon session on Tuesday, buoyed by the dollar’s losses against some major units, but choppy domestic shares prevented further gains.
At 1 pm, the partially convertible rupee was at 46.63/64 per dollar, off a high of 46.5750, but still stronger than its close of 46.705/715 on Monday.
The dollar was subdued on Tuesday, pulling away from recent two-month high against the euro, with markets wary about what the US Federal Reserve would signal after its two-day policy meeting.
Indian shares were trading 0.2% lower weighed by banks and financial stocks that dropped as higher-than-expected inflation for November triggered concerns the Reserve Bank of India (RBI) may start tightening liquidity soon.
Dealers said the tax payments and expectations of monetary action by the central bank in the near future had pushed up dollar premiums in the onshore forward market.
One-month forward premium rose as high as 11.25 points from 9.75 at the previous close. It had risen to 11.50 points on Monday, its highest since 16 October.
In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.6875 each, with the total traded volume on the two exchanges at a low $1.4 billion.
