The Hindu : Business : Rupee gains

Online edition of India's National Newspaper
Tuesday, Apr 06, 2004

Business

Business

Rupee gains

MUMBAI, APRIL 5. Overcoming early pressures, the rupee notched up fresh gains against the U.S. currency today, as strong trade and foreign capital inflows ensured resumption of the steep north-bound sojourn that was briefly interrupted last Friday. In fairly active but erratic trade at the interbank foreign exchange market, the rupee closed at 43.68/69 a dollar, a sharp 5-1/2 paise gain from the previous closing level of 43.7350/7450.

It opened on a positive note at 43.73/75 a dollar, but immediately tumbled to a low of 43.79/80 on heavy dollar demand from public sector banks.

Robust trade and foreign capital inflows hit the market in late morning deals and drove it to a high of 43.65/66, before meandering around 43.65 and 43.70 for the better part of afternoon business, dealers said.

Bulk of the inflows came in from foreign institutional investors as part of their participation in the ongoing disinvestment programme, they added.

"After the rupee dipped to 43.79/80 a dollar on demand by corporates and state-run banks, exporters offloaded dollars at regular intervals, booking profits at every dollar uptick, resulting in the rupee rally," a forex dealer said.

— PTI

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