The Hindu : Business : Rupee posts gains

Online edition of India's National Newspaper
Friday, Oct 15, 2004

Business

Business

Rupee posts gains

MUMBAI, OCT. 14. Despite surging global oil prices, the rupee today staged a relief-rally on the back of bunched-up dollar supplies from yesterday's market holiday and halted a two-session string of losses that had eroded nearly seven paise of its value.

In an otherwise quiet and listless trading at the interbank foreign exchange market, the rupee ended at 45.85/86 a dollar against Tuesday's close of 45.8650/8750. It opened on a firm note at 45.8450/8550.

The forex spot market remained closed on Wednesday on account of Maharashtra State Assembly Elections.

Steady dollar supplies from trade and foreign portfolio investment inflows helped the rupee recover partly today despite spiralling global oil prices to over $54 a barrel. Heaped-up dollar supplies from yesterday's market holiday also gave the rupee an underlying support, dealers said.

The New York light sweet crude for November delivery flared up to $54.17 a barrel before settling at $53.93 in Asian trade due to winter supply fears. The Reserve Bank of India maintained the reference rate for the U.S. currency at Rs. 45.86 and for the single European unit at Rs. 56.66.

Although the rupee managed a mild pull-back rally today, sentiment was weighed heavily on the sustained rise in global oil prices, traders said. The market was expecting fresh dollar inflows from the recently oversubscribed IPO issue of NTPC that could further help rupee sentiment, dealers said.

PTI

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