Rupee sheds gains as local shares fall

Enlarge Photo A Kashmiri money changer Nissar Ahmad displays Indian rupee notes in Srinagar July 21, 2008....

Thu, Jul 24 01:12 PM

MUMBAI (Reuters) - The rupee shed early gains in midday trade on Thursday, as losses in the local share market raised worries of rising capital outflows, but lower oil prices limited sharp losses.

* At 12:50 p.m., the partially convertible rupee was at 42.04/05 per dollar, off an early high of 41.82 and marginally stronger than 42.09/10 at close on Wednesday.

* India's main share index was down about a percent, led lower by export-oriented software stocks after the rupee rose to a two-month high against the dollar.

* Oil steadied around $124.5 per barrel on Thursday, after extending a steep drop from this month's record high due to U.S. data that signalled economic woes and high prices were slowing demand in the world's top consumer.

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