Rupee trims fall as exporters step up dollar sales
The rupee retreated from a more-than-1-month low on Wednesday afternoon as exporters sold dollars to take advantage of the sharp rise in the US unit but dollar's gains overseas and share losses continued to weigh.
* At 2pm, the partially convertible rupee was at 44.89/90 per dollar after hitting 44.9850, its lowest since March 31, but still weaker than its previous close of 44.61/62.
* One-month offshore non-deliverable forward contracts were quoted at 45.05, weaker than the onshore spot rate.
* The euro hovered near a one-year low on Wednesday, after tumbling in Asia as fears euro zone debt problems could spread spooked investors, while the dollar benefited from rising risk aversion.
* The index of the dollar against six major currencies was up 0.4 percent. Most Asian currencies were weaker compared to the dollar.
* Dealers said they would monitor the performance of the domestic sharemarket for cues on the direction of foreign fund flows which are crucial to the rupee's fortunes. Shares were trading dow 1.1 percent.
* In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 44.9825, with the total traded volume on the two exchanges at a high $5.6 billion.