MUMBAI: The Indian rupee rose for a second straight session on Tuesday in tandem with gains in domestic equities and the euro.
The partially convertible rupee was 45.96/45.97 per dollar, 0.2 percent stronger than Monday's close 46.035/045.
Traders said the rise was capped by caution ahead of the June quarter growth data at 11 a.m. (0530 GMT), and two market holidays on Wednesday and Thursday for religious festivals.
"All eyes are on the gross domestic product number. If the number is significantly different, the rupee will take cues from the movement in the Sensex," said a senior foreign exchange dealer with a private sector bank.
The main share index , or Sensex, was up 1 percent after rebounding 3.6 percent on Monday.
Asia's third-largest economy likely grew an annual 7.6 percent in the quarter through June, slowing from the previous quarter's 7.8 percent growth, the median forecast from a poll of 28 economists showed.
Traders said the rupee could weaken to as much as 46.20 if the growth was slower than expected.
The euro was at $1.4515 from $1.4491 when the domestic currency market closed on Monday, while the index of the dollar against six major currencies was at 73.688 points from 74.716 previously.
The one-month onshore forward premium was at 8.75 points from 8.25 on Monday, the three-month was at 32.85 points from 34.75 and the one-year stood at 123 points from 128.25.
The one-month offshore non-deliverable forward contracts were quoted at 46.11, 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 46.0275. The total volume was at $1.06 billion.
Copyright Reuters, 2011
Comments
Comments are closed.