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The Indian rupee edged higher on Thursday, a day after it posted its best single-day rise in two months, as gains in local shares and the euro were offset by demand for the US unit from importers, including oil firms. The partially convertible rupee ended at 45.2750/2850 per dollar, 0.2 percent above its 45.37/38 close on Wednesday. In early deals, the unit had risen as high as 45.21, its strongest since November 22.
On Wednesday, the rupee had risen 1.1 percent in its best single-day rise in two months. The one-year onshore dollar premium shot up to a high of 223.75 points from Wednesday's close of 210 points, reflecting a outright rate of around 47.50, while the one-year NDF was at 47.46.
In the currency futures market, the most traded near-month dollar-rupee contract on the National Stock Exchange, MCX-SX and United Stock Exchange closed at 45.50, 45.5025 and 45.4975 respectively, with the total traded volume on the three exchanges at a low $5.6 billion.

Copyright Reuters, 2010

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