The Hindu : Business : Rupee stages rally

Online edition of India's National Newspaper
Tuesday, Dec 14, 2004

Business

Business

Rupee stages rally

MUMBAI, DEC. 13. The rupee today rallied smartly against the U.S. currency, recovering by a steep 50 paise on the back of robust bunched up weekend dollar supplies from trade and foreign fund inflows and halted a four-session losing streak. In active trading at the interbank foreign exchange market, the rupee closed at 44.25/27 a dollar, sharply higher from last Friday's two-week closing low of 44.75/77 after trading in a broad range of 44.2300 and 44.6200, dominated mainly by dollar sellers. It opened distinctly firm at 44.60/62.

The rupee had earlier declined by a steep 111 paise from last Monday's eight-month closing peak of 44.64/65, pulled down by sustained heavy dollar demand from corporates and importers amidst a resurgent dollar overseas.

Strong heaped up dollar supplies from trade and FII inflows spurred a sharp rupee rally today, helped partly by positive sentiments following a slide in global oil prices and renewed dollar weakness overseas, dealers said. The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 44.35 and for the single European unit at Rs. 58.86. — PTI

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