Rupee recovers on exporter dollar sales

MUMBAI, NOV. 9. The rupee recovered moderate ground against the U.S. currency today, supported by fresh exporter dollar sales and unwinding of long positions by banks ahead of the weekend.

In moderately active two-way trading at the interbank foreign exchange market, the rupee closed at 47.9950/48 a dollar, a 2-1/2 paise gain from Thursday's finish of 48.0200/0250 after dipping to early intraday low of 48.03/04. It opened weak at 48.02/03.

The Indian currency declined by 4-1/2 paise yesterday, driven- down by steady dollar demand from State-run banks.

The rupee rallied in the afternoon and towards the closing bell following fresh exporter dollar sales, leading to ofloading of long dollar positions by banks ahead of the weekend, dealers said.

``With the spot date moving forward to Tuesday because of the New York holiday on Monday, many banks which had gone long on the dollar yesterday and in early deals today, later liquidated long positions after exporters' dollar supplies hit the market," a forex dealer said. ``But, the forex spot trading remained relatively lacklustre and directionless," he added.

- PTI

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