The Indian rupee weakened on Tuesday as dollar demand from oil importers and negative shares weighed, but it ended off the day's low tracking the euro's gains against the greenback. The partially convertible rupee closed at 44.51/52 per dollar after dropping to 44.6225 earlier in the day. It had closed on Monday at 44.485/495.
The one-month onshore forward premium was at 28.75 basis points (bps) versus its previous close of 26.25. The three-month was at 82.50 bps versus 83.00 bps and the one-year was at 318.00 bps compared with 318.75 bps. The one-month offshore non-deliverable forward contracts were quoted at 44.76, 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 United Stock Exchange and the MCX-SX were at 44.5275, 44.5250 and 44.5350, respectively, with total volume at $9.54 billion.