The Hindu : Business : Rupee edges up

Online edition of India's National Newspaper
Friday, Sep 03, 2004

Business

Business

Rupee edges up

MUMBAI, SEPT. 2. Overcoming early mild pressures, the rupee today gained another paisa against the U.S. currency on steady trade inflows and extended a two-session winning streak even as dealings were listless and range-bound at the interbank foreign exchange market.

Closing at 46.3150/3250 a dollar, mildly higher from Wednesday's close of 46.3250/3350, the rupee initially succumbed to light dollar demand and fell to 46.34/36 in mostly thin and lacklustre trading, dealers said.

The rupee gained 3-1/2 paise in the earlier two days. It opened weak at 46.34/36 a dollar in line with a bearish dollar against major global currencies due to a fresh rise in oil prices.

After several days of a sliding trend, world oil prices rebounded to over $44 a barrel following the news of a pipeline fire in Iraq.

The New York Mercantile Exchange oil futures was quoted at $44.02 a barrel in Asian trade.

Despite the initial blips, the rupee rallied on the back of steady trade and foreign fund inflows amidst receding demand from oil corporates in the afternoon, dealers said.

However, the forex spot trading remained dull and within narrow bands due to lack of market-moving factors, they added.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs 46.35 and the single European unit at Rs 56.43.

PTI

Printer friendly page
Send this article to Friends by E-Mail

Business