Rupee stages smart recovery

MUMBAI, JULY 19. The rupee staged a smart rally against the U.S. currency today, backed by fresh exporter dollar sales and foreign funds inflows, leading to unwinding of long positions by banks in moderately active trading at the inter-bank foreign exchange market.

Closing at 47.1150/1200 a dollar, the rupee recovered by five paise from Wednesday's lowest-ever finish of 47.16/17 in a market dominated by dollar sellers. The rupee, however, opened on a distinctly weak note at 47.17/18.

``The rupee threatened to test further record low after opening at 47.17/18, but renewed exporter dollar sales led banks to unwind long positions in the absence of follow-up demand, which helped the rupee to recover most of the overnight losses," a forex dealer said.``Foreign banks, custodian for foreign institutional investors initially offered dollars, wherein other banks later joined in the dollar sales," he added.

Dealers said the market experienced good dollar supplies in the afternoon after State-run and foreign banks sold the U.S. currency. The rupee should keep a range of 47.10 to 47.14 tomorrow.

The rupee ended at its lowest-ever close of 47.16/17 yesterday after a late bout of heavy dollar demand from banks pulled the currency down. The rupee had plunged to historic low of 47.20/21 in intra-day deals on July 3.

- PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : Maars merger with Mascon Global off
Next     : Tax system - more laxity than elasticity!