Indian rupee retreats

28 Jul, 2011

The Indian rupee pulled back from a near three-year high on Wednesday, dragged by a retreating euro on renewed concerns on Greece's debt crisis, chipping away comfort from central bank's dollar-inflow boosting hefty rate increase on Tuesday. The partially convertible rupee ended at 44.08/09 per dollar, 0.2 percent stronger from Tuesday's close, but weaker from the day's high of 43.8550 - a level not seen since August 29, 2008.
The one-month onshore forward premium was at 24.75 points from 25.25 on Tuesday, while the three-month was at 75.75 points from 74.25 and the one-year was at 246.25 points versus 246.50. One-month offshore non-deliverable forward contracts were quoted at 44.20, 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 were both at 44.3100 and the United Stock Exchange were at 44.3250. The total volume stood at $13.5 billion.

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