Rupee steady; weak local shares offset firm euro

The rupee ended almost steady on Friday for a second straight session as weak local shares and dollar demand from importers countered a firm euro, while the market prepared for crucial US jobs data due later.

"There was some strong importer demand and stock market was choppy too," said Hari Chandramgathan, a senior foreign exchange dealer with Federal Bank.
"And the market was not willing to take positions before nonfarm payrolls."
The partially convertible rupee ended at 44.81/82 per dollar almost steady from 44.83/84 previously. During the day, the local unit has moved in a band of 44.79-44.92 range.
Federal Bank's Chandramgathan expects the rupee to move in a 44.60-45.20 range next week.
US nonfarm payrolls, due at 1230 GMT, is likely to show an increase by 150,000 in May, according to a Reuters poll, less than the 180,000 forecast before Wednesday's report on slower private job growth.
The euro hovered near a one-month high against the dollar on Friday as investors anticipated weak US jobs data that could signal a protracted soft patch in the world's biggest economy and weigh further on the US currency.
The euro was at USD 1.4494 and the index of the dollar against six major currencies at 74.310 points at end of domestic currency market.
On Thursday at the end of trade in local forex market, the euro had been USD 1.4472 and the dollar index 74.340 points.
The one-month onshore forward premium was at 23.25 points versus 22.75 last close. The three-month was at 73.00 points versus 71.75 and the one-year was at 267.50 points versus 262.
The one-month offshore non-deliverable forward contracts were quoted at 44.98, 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 45.0025, 45.0075, 45.0050 respectively. Total volume was USD 8 billion.