Rupee strengthens further

MUMBAI, JUNE 19. Steady dollar inflows from exporters and foreign funds in the absence of adequate demand for the U.S. currency continued to strengthen the rupee today, in yet another day of extremely shallow and lethargic trading at the inter-bank foreign exchange market.

Gaining another paisa from the overnight level of 46.9750/9800, the rupee closed at 46.9650/9700 after it was confined to a tight band of 46.9600 and 46.9750 in slow dealings. It opened at 46.9650/9750.

The rupee gained 2-1/2 paise yesterday and had appreciated by yet another 3-1/2 paise in the earlier two sessions, backed by exporter dollar sales and unwinding of long positions by banks.

The rupee-dollar outright spot dealings remained quiet and range- bound due to lack of market-moving factors. Moderate dollar supplies from exporters and foreign funds amidst meagre demand continued to give the rupee slight underlying support, dealers said.``The day was extremely sluggish with no worthwhile purchases nor heavy selling, as the rupee meandered in a tight 1- 1/2 paise band directionless. Some month-end dollar demand may emerge in the latter part of the week which may exert mild pressure on the rupee," a forex dealer said.

- PTI

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