The Indian rupee snapped a three-day losing streak on Tuesday boosted by gains in domestic shares, which raised hopes for some foreign fund inflows, while sharp losses in the dollar versus major currencies also helped. The partially convertible rupee closed at 45.42/43 per dollar, 0.2 percent stronger than its 45.52/53 close on Monday, when it dipped to a seven-week low of 45.6250.
"There was good FPO (follow-on-offer) related dollar selling by custodian banks, but there were oil-related bids as well," said Vikas Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank. One-month offshore non-deliverable forward contracts were quoted at 45.66, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and the United Stock Exchange closed at 45.5275, 45.53 and 45.5275 respectively.