Date:22/07/2006 URL: http://www.thehindubusinessline.com/2006/07/22/stories/2006072203440600.htm

Back Rupee recovers marginally vs $

Our Bureau

Mumbai, July 21

The rupee recovered marginally against the dollar due to the absence of strong demand from domestic oil companies.

The home currency opened at 46.78/79 and touched an intra-day low of 46.83/84. It finally closed at 46.76/77. On Thursday, the rupee ended at 46.78/79.

Dealers said the rupee touched an intra-day low of 46.83/84 as the domestic equity markets weakened.

"The statement made by the Finance Minister, Mr P. Chidambaram, on the inflation being tolerable, pacified the market and the rupee recovered to 46.76/77," said a dealer at a private bank.

There was not much demand from oil companies, he said. Rupee also tracked the movement of yen against the dollar. The yen strengthened against the dollar. The Federal Reserve Governor's statement hinting that there would be no further interest rate hike impacted the dollar, he said. In the forward premia market, the 12-month closed at 1.06 per cent (1.1 per cent) and the 6-month ended at .87 per cent (.94 per cent).