Rupee stages modest rally against dollar

MUMBAI, AUG. 25. Renewed exporter dollar sales enabled the rupee to post a modest rally against the us currency today after a spillover of overnight dollar short-covering exerted pressure on it.

In fairly active two-way trade at the interbank foreign exchange market, the rupee ended at Rs. 45.86/88 a dollar, a four paise gain from Thursday's lowest ever close of Rs. 45.90/92.

Opening on a weak note at Rs. 45.93/95, the rupee dipped to intra-day lows of Rs. 45.96/98 after banks went long on the dollar in early trade expecting corporate dollar demand.

But, fresh dollar sales by exporters and some foreign banks later allowed the rupee to bounce back smartly, dealers said.

Meanwhile, state-owned banks continued to bid the us currency, they added.

``Mild nervousness gripped the forex spot market around midday, causing jittery operators to cover short-dollar positions after the central bank said that it was not raising interest rates nor reviewing exporters' forex accounts in the near future,'' a forex dealer said.

- PTI

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Section  : Business
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