Rupee recovers on exporter dollar sales

MUMBAI, OCT. 3. The rupee rallied smartly against the U.S. currency today on renewed exporter dollar sales and unwinding of long positions by banks after war clouds appeared to have receded in the absence of any direct confrontation.

In moderately active trading at the inter-bank foreign exchange market, the rupee closed at 47.91/92 a dollar, a sharp recovery of six paise from Monday's closing levels of 47.97/98. It opened positively at 47.96/98. The forex market was closed yesterday on account of Gandhi Jayanti.

Dollar supplies accumulated from Tuesday's market holiday gave the rupee good underlying support while demand for greenbacks was limited.

Moreover, banks which had gone long on the dollar on Monday owing to heightened tensions, unwound long dollar positions and helped the rupee partially bounce back, dealers said.

- PTI

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Section  : Business
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