Rupee up but month-end importer demand caps rise

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The rupee was little moved in afternoon trade on Monday as firm shares and broad weakness in the dollar continued to support the local unit, but some month-end dollar demand prevented further gains.

* At 1:55 pm, the partially convertible rupee was at 46.45/46, 0.3% stronger than 46.60/61 at close on Friday.

* Dealers said there was good demand from importers and oil refiners to meet month-end import commitments. Oil is India's largest import and refiners are the biggest buyers of dollars in the domestic currency market.

* Shares were trading up about 0.9% led by gains in energy major Reliance Industries after it made an offer to buy a controlling interest in US-based bankrupt petrochemicals company LyondellBasell Industries.

* The US dollar drifted lower against the euro and other major currencies on Monday, losing its shine to a surging gold price and more dovish comments from US central bankers.

* In the currency futures market , the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at 46.4575 and 46.4550 respectively, with the total traded volume on the two exchanges at about USD1.6 billion.