The Hindu : Rupee scales new peak

Online edition of India's National Newspaper
Tuesday, Mar 23, 2004

Business

Business

Rupee scales new peak

NEW DELHI, MARCH 22. Sustained robust trade and foreign investment inflows amidst negligible dollar demand drove the rupee to a new over 43-1/2-month high against the U.S. currency today with sentiment upbeat for further gains.

Breaching the crucial 45.10 a dollar barrier, the rupee strode to a fresh record closing peak of 45.0875/0925 and within striking distance of 45.02/04 logged at the close of trading on July 31, 2000, driven-up mainly by the heavy disinvestment proceeds from the ONGC sale, a dealer said.

Posting a sharp gain of 7-1/4 paise from last Friday's finish of 45.16/17, the rupee has appreciated by nearly one per cent against the dollar in the current calendar year after a 5.32 per cent rise in 2003, buoyed by strong foreign investment inflows and export receipts. The rupee opened at 45.16/17. Heavy export receivables, corporates bringing back dollar proceeds raised overseas as part of external commercial borrowings and foreign institutional investors inflows into the thriving economy were the main factors behind the sharp rise in the rupee value, bankers said. Lack of adequate dollar demand from corporates and importers and a relatively weak dollar overseas also contributed to steep rupee gains, they added.

PTI

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