The Hindu : Business : Rupee recovers

Online edition of India's National Newspaper
Thursday, Sep 09, 2004

Business

Business

Rupee recovers

MUMBAI, SEPT. 8. Halting a two-session slide, the rupee today rallied against the U.S. currency, supported by healthy trade and foreign fund inflows even as business remained quiet and directionless at the interbank foreign exchange market.

Closing at 46.32/33 a dollar, the rupee recovered three paise from Tuesday's close of 46.3550/3600 after it was wedged in a tight range of 46.3200 and 46.3600 in trendless dealings. It opened on a positive note at 46.34/35 following the dollar's brief overnight retreat against major global units ahead of the U.S. Federal Reserve Chairman, Alan Greenspan's testimony later today.

The rupee lost 1-1/2 paise yesterday and around 5 paise on Monday, dragged down by steady dollar demand from oil corporates amidst thin supplies.

Overcoming early pressures after the rupee dipped to 46.35/36, healthy trade and foreign fund inflows hit afternoon trading and helped the domestic unit bounce back to 46.32/33 at the close with sentiment upbeat for further gains tomorrow, dealers said.

"Bunched up dollar supplies from Monday's Labour Day holiday in the U.S. hit afternoon trade and amidst receding dollar demand from oil companies, the rupee posted a sharp rally," a forex dealer said.

Sentiment for the rupee has turned somewhat bullish following the sustained slide in global oil prices and the resumption of foreign fund inflows, bankers said. — PTI

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