The Hindu : Business : Rupee ends 14 paise higher against $

Online edition of India's National Newspaper
Friday, Aug 18, 2006

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Business

Rupee ends 14 paise higher against $

MUMBAI: The rupee closed sharply higher at 46.4350/4450 a dollar on Thursday following fairly heavy exporter sales amid a sliding dollar overseas and easing crude oil prices.

The rupee closed 14 paise higher over the previous close of 46.5750/5850 as it also derived strength from firm Asian currencies, which remained strong against the dollar after the U.S. data on tame inflation and an increasingly uncertain housing market, forex dealers said.

The data lessened chances of further near-term interest rate hikes by the Fed, they added. The sliding dollar sparked off dollar sales from all quarters, a leading dealer said.

Global crude prices fell below $71.50 a barrel in Asian trade during the day.

The rupee was well supported by reduced dollar supplies in view of the August 15 holiday.

In overseas markets, the dollar continued its slide against other major currencies on Wednesday after the U.S. economic reports diminished hopes for further near-term interest rate increases by the Federal Reserve.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 46.46 and for the single European unit at Rs. 59.72. — PTI

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