Rupee extends gains

MUMBAI, OCT. 11. The rupee continued to rule relatively firm against the U.S. currency today on steady dollar supplies amidst limited demand in extremely thin and listless trading at the inter-bank foreign exchange market.

Closing at 48.0325/9425 a dollar, mildly higher from Wednesday's finish of 48.04/05, the rupee extended a three-session rally, backed by healthy dollar supplies from exporters, leading to offloading of long positions by banks. The rupee opened at 48.04/06.

The rupee recovered by around ten paise in the last three days after its sharp fall of around 12 paise on Monday, following the U.S.-led military operations against Afghanistan.

``Discounting the ongoing U.S.-led military attacks against Afghanistan, the rupee has reasserted to the basic market forces of demand/supply to determine the exchange rate, as the currency steadily crawls to a recovery," a forex dealer said.

Sentiment has changed for the better due to falling global oil prices, sustained rally on the Bombay Stock Exchange and an assurance by the central bank to meet any temporary dollar demand/supply mismatches, bankers said.

Traders expect the rupee to remain stable tomorrow and rule in the range of 48.00-48.04 in the absence of any adverse developments in Afghanistan.

- PTI

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