The Indian rupee rebounded on Monday from over two-month lows in the previous session on the back of dollar sales by custodian banks and a broad risk-on mood globally, but dollar demand from oil firms capped the gains. "After the 2G auction it seems difficult for the government to contain the fiscal deficit at 5.3 percent as estimated by the finance minister, so bias will be towards weakening of the rupee," said Uday Bhatt, a forex dealer with UCO Bank.
The partially convertible rupee closed at 55.06/07 per dollar versus its previous close of 55.1650/1750. On Friday, the unit had dropped to a low of 55.2050, its weakest since September 13. In the offshore non-deliverable forwards market, the most-active one-month contract was at 55.32 while the three-month was at 55.90. In the currency futures market, the most-traded near-month dollar/rupee contract on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 55.11 with a total traded volume of $4.35 billion.
Comments
Comments are closed.