Tuesday, December 25, 2007

Rupee rises 10 paise to 39.44/45 a dollar

     The rupee on Monday ended stronger by 10 paise at 39.44/45 against the US currency, following a sharp rally in equity markets, amid month-end dollar demand by oil refiners.

In active trade at the Interbank Foreign Exchange (forex) market, the local currency fluctuated in a range of 39.42 and 39.53 during the day after resuming firm at 39.45/46 a dollar from previous close of 39.54/55 a dollar.

Strong Asian equity markets coupled with anticipation of portfolio inflows into the fast growing economy boosted the rupee semtiment, forex dealers said.

The rupee came under pressure due to month-end dollar demand by oil refiners during initial trading, but overcame the resistance on the back of a strong surge in stocks, they added.

Rupee vs Dollar

Oil corporates were believed to be accumulating dollars to meet their monthly import payments.

The benchmark Sensex today moved up by 692 points, while Asian indices closed higher in a range of 1 and 2.6 per cent.

Finance Minister P Chidambaram had last week tried to downplay the rupee appreciation saying it has risen by just six per cent against a basket of six currencies.

However, the domestic currency has appreciated by over 12 per cent against dollar so far in the year, largely driven by sustained capital inflows into equity

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