The Indian rupee retreated from a more than one-month low on Wednesday, boosted by firm domestic shares and supported by losses in the dollar against major currencies overseas. The partially convertible rupee ended Wednesday at 46.805/815 per dollar, stronger than 47.07/08 at close on Tuesday when it had fallen to 47.0950, its weakest since July 22. In August, the rupee had declined 1.4 percent.
"In the short-term I see the rupee under pressure and it may again touch 47 because of the unsustainable trade deficit," said Ashutosh Khajuria, head of treasury at IDBI Bank in Mumbai. One-month offshore non-deliverable forward contracts were quoted at 46.98, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were at 46.9925 and 46.9975 respectively.
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