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The Indian rupee nudged up on Wednesday morning, boosted by dollar selling from custodian banks looking to buy shares in the local market, but the US unit's gains versus major currencies is seen limiting a sharp rise. At 11 am (0530 GMT), the partially convertible rupee was at 46.38/39 per dollar, stronger than its 46.445/455 previous close. On Monday, the unit had risen to 46.2650 intraday, its highest since August 10.
One-year onshore dollar premium was at 219.25 points versus its previous close of 215 points as market expects another 25 basis points hike in rates at Thursday's policy review. One-month offshore non-deliverable forward contracts were quoted at 46.57, weaker than the onshore spot rate.

Copyright Reuters, 2010

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