Rupee stages smart recovery

MUMBAI, MAY 23. The rupee posted a smart recovery against the U.S. currency today on fresh exporter dollar sales and unwinding of long positions by banks after the political uncertainties appeared resolved and global oil prices somewhat stabilised.

In quiet to moderately active trade at the interbank foreign exchange market, the rupee closed at 46.97/98 a dollar, sharply higher from Tuesday's finish of 47.0050/0100. The rupee opened at 47.00/01.

News about the resolution of the political problems at the Centre helped the rupee stage a sharp rally, as exporters resorted to dollar sales, while banks unwound long overnight overbought dollar positions, dealers said.The Indian currency also gained comfort from relatively stable global oil prices, they added.

The benchmark Brent crude oil price was quoted at $29.15 a barrel today, well below the $ 30 a barrel on Monday.

The rupee had breached the 47-dollar psychological barrier yesterday, driven-down by concerns of rising global oil prices and political uncertainties.

The rupee is likely to remain rangebound with a slight downward bias, but if the political situation gets even better then the Indian currency will strengthen further, a dealer commented.

- PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : Infosys leads rally in pivotals
Next     : 1:1 bonus from Monsanto India