The country has the only major foreign exchange (forex) market to remain open on Friday, 1 January - the date of the euro's launch.

Dealers quoted the Indian rupee at 49.769 to the euro - a quote derived from the rate of $1.16 to the euro set on Thursday.

However, traders in the commercial capital, Bombay, said interest in the new currency would only pick up when European and other international markets reopened after the New Year holiday.

Corporate and inter-bank dealings in the euro are also expected to begin after a fortnight when international trends in the new currency firm up.

Local dealers 'tentative'

The Indian central bank, the Reserve Bank of India, has issued a set of guidelines to merchant bankers and forex dealers to keep them in a state of euro readiness.

Despite the guidelines and a couple of euro workshops organised by the Indian Foreign Exchange Dealers' Association, most local dealers have been quite tentative.

BBC Bombay Correspondent Sanjiv Shrivastava says it may be a few months before they begin active trading in the euro.