The Hindu : Business : Rupee recovers

Online edition of India's National Newspaper
Friday, Nov 26, 2004

Business

Business

Rupee recovers

MUMBAI, NOV. 25. After a brief two-day respite, the rupee today climbed to a new 5-1/2-month closing peak of 45.0250/0350 a dollar on the back of healthy trade and foreign fund inflows in spite of central bank dollar buying intervention containing its gains. In moderately active two-way trading at the interbank foreign exchange market, the rupee gained four paise from yesterday's close of 45.0650/0750 after hitting the day's peak of 44.9850/9950. It opened on a firm note at 45.05/06, reflecting the dollar's tumble to record lows against major global currencies, mainly the euro.

Notwithstanding possible month-end pressures and central bank intervention through dollar purchases by state-run banks, the rupee rallied smartly to new 5-1/2-month high on the back of robust trade and foreign portfolio investment inflows, discounting the rise in global oil prices, dealers said.

The forex spot trade, however, was relatively quiet due to the `Thanksgiving Day' holiday in New York, as there were no cash transactions. Light sweet crude oil for delivery in January closed yesterday at $48.44 a barrel on low gas inventories ahead of the four-day long holiday weekend in the U.S.

PTI

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

Business