The Hindu : Business : Rupee extends gains

Online edition of India's National Newspaper
Wednesday, Jun 09, 2004

Business

Business

Rupee extends gains

MUMBAI, JUNE 8. Despite the initial blips, the rupee rose to a new one-month closing high of 45.0250/0350 a dollar today, driven-up by renewed exporter dollar sales amidst the U.S. currency's lingering weakness overseas with sentiment favourable for further advances tomorrow.

Extending gains to the seventh straight session, the rupee notched up another 1-1/2 paise from Monday's close of 45.04/05 after dipping to the early low of 45.07/09, but trading was quiet and range-bound at the interbank foreign exchange market, dealers said. The rupee, however, opened on a positive note at 45.03/04. Backed by strong trade and foreign fund inflows, the rupee has appreciated by nearly 46 paise since the start of last week.

Notwithstanding a modest downward correction to 45.07/09 in early deals, the rupee rallied to a new one-month high of 45.0250/0350 on the back of fresh exporter dollar sales and reflected a lingering weak dollar overseas.

With the resumption of foreign institutional investment inflows into the rebounding stock markets, the outlook for the domestic currency has turned favourable even as a fresh rise in global oil prices is a cause for worry, a forex dealer said.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 45.09 and for the single European unit at Rs. 55.62.

PTI

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