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The Indian rupee reversed intraday losses on Thursday in tandem with a recovery in local shares and the euro as hopes gained that Athens may not conduct a referendum on the latest bailout plan, easing concerns of a default that could spill over to other countries. The partially convertible rupee ended 0.08 percent higher at 49.14/15 per dollar after dipping to as low as 49.56 in early trade.
The one-year onshore forward premium was at 182.25 from 170.25. It had touched 182.50 intraday, a level not seen since August 8. The one-month onshore forward premium was steady at 26.75 points from Wednesday, the three-month was at 69 points from 69.75.
One-month offshore non-deliverable forward contracts were quoted at 49.47, 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 the MCX-SX both ended at 49.3475 while on the United Stock Exchange it ended 49.35. The total volume was at $4.82 billion.

Copyright Reuters, 2011

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