The Hindu : Business : Rupee gains a hefty 64 paise against dollar

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Thursday, Jul 24, 2008
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Rupee gains a hefty 64 paise against dollar

MUMBAI: A day after the UPA Government won the trust vote, the Indian currency on Wednesday closed stronger by a huge 64 paise against the greenback in anticipation of huge dollar inflows, particularly riding on the Indo-U.S. civilian nuclear deal.

At the interbank foreign exchange market, the domestic unit moved widely in a range of 42.08 and 42.53 after resuming firm at 42.49/51.

Rupee premiums on forward dollar remained bearish and closed further lower on sustained receiving by exporters.

Forex dealers said the rupee rose sharply because the government winning a confidence vote in Parliament on Tuesday had triggered a collective anticipation of key reforms, which had been on the back burner in the last four years, would be looked afresh as the Left parties were no more with the government. They said exporters heavily sold dollars anticipating further surge in the rupee on political stability.

The domestic currency also drew support from easing global crude oil prices and surging equity markets.

The Reserve Bank of India, however, fixed the reference rate for the American dollar at Rs. 42.33 and for the single European unit at Rs. 66.75.

Global oil prices fell to around $126 a barrel in Asian trade. — PTI

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