The Indian rupee retreated from four-and-half-month highs on Tuesday, weighed by the dollar's gains versus majors and weak domestic equities, but traders expect the local unit to resume rally on robust capital inflows. The partially convertible rupee closed at 45.15/16 per dollar, 0.3 percent weaker than 45.01/02 at close on Monday, when it had touched 44.99, its highest level since May 13. The unit moved in a band of 45.05 to 45.2850 during the day.
One-month offshore non-deliverable forward contracts were quoted at 45.31, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange closed at 45.40, 45.3975 and 45.4050 respectively, with the total traded volume on the three exchanges at $8.5 billion.