Rupee stuck in thin band before budget

The rupee was stuck in a narrow band on Monday as traders were reluctant to enter the market before the budget is unveiled around 11am.

At 9:39am, the partially convertible rupee was at 45.28002900 per dollar, from Friday's close of 45.3132.

Finance minister Pranab Mukherjee, who is scheduled to begin his budget speech around 11am (0530 GMT), is expected to announce measures to tame the fiscal deficit and try to rein in surging inflation.

Underlying sentiment is negative for the rupee, given the improvement in the dollar overseas and continuing surge in crude oil prices, traders said.

The index of the dollar against six major currencies was at 77.262 points. On Friday, at the end of domestic trade, the index had been at 77.177 points.