Rupee gains fresh ground against $

MUMBAI, MAY 25. The rupee gained fresh ground against the U.S. currency today on the back of steady dollar inflows from foreign funds and exporters, but late dollar demand from state-run banks limited its gains at the interbank foreign exchange market.

The Indian unit closed at Rs. 46.96/9650 a dollar, around 1-1/2 paise higher from Thursday's finish of 46.97/98 after touching intraday highs of 46.94/95. The rupee opened at 46.97/98.

Healthy dollar supplies from foreign banks, custodians for foreign institutional investors and export proceeds gave the rupee good underlying support, but dollar demand from a few state-owned banks in the afternoon put a lid on the rupee's rise, dealers said.

However, the forex spot trade was generally quiet and range-bound due to lack of market-moving factors, they added.

Marketmen expect the rupee to remain stable in the near-term as concerns of political instability and rising global oil prices which put pressure on the currency earlier in the week has abated.

The Reserve Bank of India fixed the reference rate at Rs. 46.95 a dollar, as against 46.98 yesterday.

- PTI

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