Date:24/05/2006 URL: http://www.thehindu.com/2006/05/24/stories/2006052405811600.htm

Business

Rupee edges up against dollar

MUMBAI: The Indian currency rallied mildly to close at Rs. 45.54/55 a dollar on Tuesday due to light exporter dollar sales amid a retreating dollar overseas and arrested a recent slide that eroded over 37 paise of its value even as the outlook remains uncertain due to a slowdown in FII (foreign institutional investor) inflows and firm crude oil prices.

Gaining a paisa from Monday's close of Rs. 45.55/57, the rupee traded within a fairly broad range of 45.48 and 45.60 a dollar, wedged between dollar demand from state-run banks and exporter dollar sales in mostly quiet but cautious trade at the interbank foreign exchange market, dealers said.

The sharp recovery at the stock markets also helped market sentiments leading to unwinding of long dollar positions by banks towards the fag end of the day.

The rupee dipped to 45.60 in late morning deals and rallied to a high of 45.48 before settling at 45.54/55, a shade higher from Monday's finish of 45.55/57. — PTI