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The Indian rupee ended weak on Wednesday following covering of some short-dollar positions, but gains in local equities and the euro ensured the fall was limited. The partially convertible rupee ended at 44.5000/5100 per dollar after weakening to 44.5875, its lowest since March 31. It had closed at 44.385/395 on Monday.
The one-month onshore forward premium was at 25.50 basis points from 26.25 on Monday. The three-month was at 80.25 basis points versus 80.75 and the one-year was at 300.00 basis points from 304.50. The one-month offshore non-deliverable forward contracts were quoted at 44.69, weaker than the onshore spot rate. In the currency futures marke , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange ended at 44.5425, 44.5900 and 44.5875 respectively. Total volume was $8.48 billion.

Copyright Reuters, 2011

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