The Indian rupee weakened on Thursday, retreating from a new 5-1/2 month high touched earlier, weighed by the dollar's strength overseas and choppy local shares. The partially convertible rupee closed at 44.20/21 per dollar, after touching 44.0950 earlier in the day, its highest since October 15. On Wednesday, it had ended at 44.16/17.
The one-month onshore forward premium was at 24.50 basis points, down from 26.25 on Wednesday, the three-month was at 79.00 basis points versus 79.75 and the one-year was at 297.50 basis points versus 301.25. The one-month offshore non-deliverable forward contracts were quoted at 44.39, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were at 44.3575, 44.3550 and 44.3550 respectively, with the total volume at about $6.37 billion.