Rupee ends higher despite Indo-Pak border tension

MUMBAI, OCT. 16. Renewed exporter dollar sales and late unwinding of long positions by banks drove the rupee sharply higher against the U.S. currency today after overcoming brief early pressure from Indo-Pak border tensions.

The rupee closed at Rs. 47.98/99 a dollar, a comfortable 4-1/2 paise gain from Monday's finish of 48.0250/03, following an intraday peak of 47.97/98, backed by healthy dollar supplies in fairly active two-way trade at the interbank foreign exchange market.

After opening softer at 48.0350/0450, the rupee dipped to early intraday lows of 48.0450/0550, driven-down by dollar demand from banks following concerns over fresh border tensions between India and Pakistan.

Banks went long on the dollar in early trade due to renewed tensions on the Indo-Pak border, a forex dealer said.

Indian artillery launched a barrage against Pakistani military posts across the Kashmir border, sparking retaliatory fire.

The currency remained under pressure during the morning session, but later dollar supplies emerged, triggering stop-loss dollar sales and late offloading of long dollar positions by banks, dealers said.

The rupee bounced back to 48-dollar levels, touched an intraday high of 47.97/98, before settling at the close to 47.98/99, a rise of over four paise and a positive outlook for tomorrow, they added.

- PTI

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