The Hindu : Business : Rupee moves up further

Online edition of India's National Newspaper
Thursday, Jun 03, 2004

Business

Business

Rupee moves up further

MUMBAI, JUNE 2 . Notwithstanding surging global oil prices, the rupee strengthened against the U.S. currency, backed by trade and fresh foreign capital inflows in an otherwise quiet and range-bound trading at the interbank foreign exchange market.

Closing at 45.3750/3850 a dollar, yet another 3-1/2 paise gain from Tuesday's finish of 45.41/42, the rupee traded between 45.3700 and 45.4400 in directionless business, dealers said.

The rupee gained six paise in the earlier two sessions. It, however, opened relatively weak at 45.42/44, weighed down by a surge in global oil prices to an all-time high of $42.45 a barrel in early Asian trading. Overcoming early pressures due to a spurt in oil prices after the weekend Saudi attacks, the rupee rallied smartly and posted further gains, helped by fresh foreign fund inflows and export receivables, dealers said.

Foreign banks, custodians for foreign institutional investors were mainly selling dollars, they added.

Meanwhile, the Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 45.42 and for the single European unit at Rs. 55.77.

PTI

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