Rupee up on euro's gains; software firm sells dollars

At 11:05 am (0535 GMT), the partially convertible rupee was at 44.7700/7725 per dollar, 0.1% stronger than its previous close of 44.81/82.

Traders said gains in the rupee, which moved in tight range of 44.73-44.7775, was held in check by subdued shares and defence and oil related payments.

"I think 44.70 will be a support. We are also eyeing the stock market for cues," a trader with a state-run bank said.

He forecast a 44.70-44.80 range for the day.

Traders said a big software services company sold dollars, while oil refiners were seen buying.

The US dollar slid to a fresh one-month low against a basket of major currencies in early Asian trade, finding no support after disappointing jobs data bolstered expectations that US interest rates will stay low for longer.

The index of the dollar against six major currencies was down 0.06% at 73.740 points, and below 74.310 when the domestic market closed on Friday.

The euro was at USD 1.4636, compared with USD 1.4494 at the close of local forex trade on Friday.

The 30-shares BSE index shed 0.6% on muted world markets and inflation worries due to an impending government decision this week on a fuel price increase.

Oil is India's largest import item and refiners are the biggest buyers of dollars in the local forex market.

Brent crude slipped toward USD 115 a barrel on Monday on concern about demand after disappointing jobs data from top consumer the United States, but a softer dollar and political upheaval in the Middle East limited losses.

The one-month onshore forward premium was steady at 24 points. The three-month was at 75 points versus 73 at last close and the one-year was at 276.50 points versus 267.50.

The one-month offshore non-deliverable forward contracts were quoted at 44.95, 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 at 44.9550, 44.9575 and 44.9475 respectively. Total volume was USD 1.76 billion.