The Indian rupee reversed all intraday gains to hit its lowest in two-and-a-half years on Monday after domestic equities lost steam and on strong dollar demand mainly from local oil refiners. Lingering concerns over the possible spill over of Europe's debt crisis created choppiness in the euro and weighed on the rupee as well, traders said.
The partially convertible rupee ended 0.3 percent lower at 50.285/295 per dollar, after touching 50.4250- its lowest since April 28, 2009. It had ended at 50.115/125 on Friday.
The one-month onshore forward premium was at 27.50 points from 27 points on Friday, the three-month was at 68.50 points from 66.50 and the one-year was at 172.75 points from 163.50. One-month offshore non-deliverable forward contracts were quoted at 50.61, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange ended at 50.4450, while on the United Stock Exchange and the MCX-SX both ended at 50.4475. The total volume was at $4.47 billion.