The Hindu : Business : Rupee posts further gains

Online edition of India's National Newspaper
Thursday, Oct 21, 2004

Business

Business

Rupee posts further gains

MUMBAI, OCT. 20. The rupee today hit a new three-month closing high of 45.7650/7750 a dollar, driven-up by steady trade and foreign portfolio investment inflows but trading was generally quiet and range-bound at the interbank foreign exchange market.

Gaining another 3-1/2 paise from Tuesday's finish of 45.7950/8050, the rupee was now within striking distance of eclipsing the 45.69/70 a dollar logged at the close on July 12, a dealer said.

The rupee opened on a distinctly firm note at 45.78/79, reflecting the dollar's weakness against major global currencies. It shot up by nearly five paise yesterday, buoyed by strong trade and foreign fund inflows.

Traders said the rupee continued to gain ground on the back of dollar inflows on account of subscription to the initial public offer of the National Thermal Power Corporation (NTPC) by foreign institutional investors. Cooling of global oil prices and a weak dollar overseas also helped market sentiment, they added.

Crude oil prices were hovering around $53.44 a barrel after climbing to record peaks of $55.33 on Monday. The Reserve Bank of India fixed the reference rate for the US currency at Rs. 45.79 and for the single European unit at Rs. 57.32. — PTI

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

Business