The Indian rupee lost ground on Thursday as the stock market slipped from a 15-month high and the dollar gained overseas, with demand from gold importers ahead of major festivals also weighing, traders said. The partially convertible rupee ended at 48.63/64 per dollar, about 0.2 percent weaker than Wednesday's close of 48.51/52.
It hit 48.29, its strongest level since August 14, in morning deals as the stock market rose more than 1.5 percent to its highest since June 2008, but then lost ground as shares changed direction. "Banks had sold the dollar in the morning due to the US currency weakness and a positive opening for the Sensex," said a trader at a foreign bank, referring to the stock index. One-month offshore non-deliverable forward rupee contracts were quoting at 48.66/76, slightly weaker than the onshore spot rate.