The Hindu : Business : Rupee ends higher

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Thursday, Mar 20, 2008
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Business

Rupee ends higher

MUMBAI: Expectations of fresh capital inflows after overnight U.S. rate cut and firm equity markets boosted rupee sentiment and the domestic unit closed higher by 8 paise at 40.43/44 against the dollar.

The U.S. Federal Reserve on Tuesday slashed the interest rate by 75 basis points to boost the sagging economy. A forex dealer said,

“Dollar generally becomes weak after rate cut and also dollar dominated assets, hence traders prefer to park their funds in the emerging markets like India.”

At the interbank foreign exchange market, the Indian unit opened sharply higher at 40.36/38 against 40.51/52 on account of smart rally in Asian indices.

Forex dealers said some dollar buying by importers, mainly oil refiners, pushed the rupee down to 40.53 before recovering to close at 40.43/44. The rupee was moving on cues from equity markets, some dealers said.

The forex market will remain closed on March 20 and 21 on account of ‘Id-E-Milad’ and ‘Good Friday’. — PTI

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