The Indian rupee recovered from eight-week lows on Thursday as the dollar fell sharply against major currencies, but its gains were capped by a choppy local sharemarket. The partially convertible closed at 48.72/73 per dollar, after falling to 49.06, its weakest since May 15, up 0.3 percent from Wednesday's close of 48.88/89. However, the unit is still down 1.7 percent this week.
"Custodial banks were seen selling dollars in the market today and the drop in the dollar index also had an impact on the rupee," Astosh Raina, head of forex trading at HDFC Bank said. One-month offshore non-deliverable forward rupee contracts traded in Singapore were quoted at 48.79/89, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX closed at 48.7875 and 48.79 respectively, with the total traded volume on the two exchanges at about $1.7 billion.
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