The Indian rupee rose to a near four-week high on Monday boosted by firm local shares and other Asian peers, but pared some gains on dollar buying by importers. The partially convertible rupee closed at 46.53/54 per dollar, after touching 46.4550, its strongest since August 11, and 0.2 percent above its close of 46.63/64 on Friday.
"Oil companies were there through the day today and the dollar too retraced against majors; this saw the rupee paring gains," said Vikas Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank. One-month offshore non-deliverable forward contracts were quoted at 46.76, weaker than the onshore spot rate, suggesting a bearish a near-term outlook.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX closed at 46.69 and 46.70 respectively, with the total traded volume on the two exchanges at a low $3.7 billion.