Indian rupee up a tad in narrow band
MUMBAI: The Indian rupee rose marginally on Wednesday, but was stuck in a narrow band, as demand for the dollar from oil importers offset local share gains and dollar inflows.
The partially convertible rupee closed at 44.745/755 per dollar, 0.1 per cent stronger than its previous close of 44.78/79. It had traded in a range of 44.7200-44.7950 intraday.
"Tomorrow being the month-end and the fiscal yearend, rupee might be a bit volatile. Today not much of activity was seen," said Naveen Raghuvanshi, an associate vice president at Development Credit Bank.
"People will have to squareoff," he said, adding the rupee is expected to trade in a broad band of 44.50-45.00 per dollar on Thursday.
The one-month onshore forward premium was at 25.25 points, down from 27.50, the three-month premium at 78.25 points versus 82.75 and the one-year at 288.00 points from 296.25.
The one-month offshore non-deliverable forward contracts were quoted at 44.98, weaker than the onshore spot rate.
In the currency futures market, the most traded nearmonth dollar-rupee contracts on the National Stock Exchange were at 44.9400, and on the MCX-SX and the United Stock Exchange at 44.9450, with the total volume at about $5.48 billion. - Reuters