MUMBAI: The Indian rupee was little changed on Friday as comfort from a rise in domestic equities was offset by importer dollar demand and a marginal pull back in the euro.
Caution before crucial US nonfarm payrolls data due after local market hours on Friday also kept the rupee under pressure, dealers said.
"Euro has been volatile and there is non-farm pay rolls data. So not many people will want to take large weekend risks," said a dealer with a foreign bank.
"We could see rupee in a 44.75-44.90 band."
The common European unit pulled back to $1.4481 after hitting a one-month high of $1.4517 earlier. At end of trade in local forex market on Thursday, the euro had been $1.4472.
The index of the dollar against six major currencies was 0.01 percent up at 74.343 points. The index had been at 74.340 points at end of domestic currency market on Thursday.
The benchmark index was up over 6 percent with energy major Reliance Industries and engineering giant Larsen & Toubro leading the gains.
Traders said dollar demand on Friday was sparked from oil firms and defence payment related purchases.
Oil is India's biggest import item and domestic oil refiners are the largest purchasers of the dollar in local currency market.
US nonfarm payrolls likely increased by 150,000 in May, according to a Reuters poll, less than the 180,000 forecast before Wednesday's report on slower private job growth.
The one-month onshore forward premium was at 23.75 points versus 22.75 last close. The three-month was at 73.25 points versus 71.75 and the one-year was at 269.50 points versus 262.
The one-month offshore non-deliverable forward contracts were quoted at 45.03, 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 all at 45.0350. Total volume was $1.83 billion.
Copyright Reuters, 2011
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