The rupee strengthened on Tuesday, recovering from a one-week low touched in the previous session, aided by strong euro and Asian peers, but choppy local shares and dollar demand from oil refiners capped gains.
The partially convertible rupee ended at 44.73/74 per dollar, 0.3% stronger from Monday's close of 44.86/87. Intraday, the rupee moved in 44.7150- 44.8400 range. Traders expect the unit to stay in a narrow band and see subdued volumes until RBI's rate decision around noon on Thursday.
RBI is expected to raise its policy interest rate by a total of 75 bps for the rest of 2011, including a 25 bps increase on Thursday, unchanged from forecasts in a May 3 poll, a Reuters poll found on Tuesday.
The euro was at $1.4429 at the local forex market close and the index of the dollar against six major currencies was down 0.11% at 74.430 points. The one-month onshore forward premium was at 26.50 points versus 24 points at last close. Onemonth offshore non-deliverable forward contracts were quoted at 44.95, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on NSE and the MCX-SX were both at 44.8650 and on the United Stock Exchange were at 44.8625, with total volume at $8.50 billion.
source-http://economictimes.indiatimes.com/markets/forex/rupee-climbs-on-strong-euro/articleshow/8856181.cms
steven
management trainee-fundamental analysis
DENIP consultants Pvt Ltd
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