Date:17/08/2006 URL: http://www.thehindubusinessline.com/2006/08/17/stories/2006081703750600.htm

Back Rupee gains against dollar

Our Bureau

Mumbai, Aug. 16

The rupee strengthened against the dollar on Wednesday on the back of foreign funds flowing into the equity markets. The currency opened at 46.55/57 and moved in a narrow range of 46.53-46.59, finally ending at 46.58, higher than Monday's close at 46.61/62. The market was closed on Tuesday on account of Independence Day. "The domestic equity market was strong on Wednesday, causing the home currency to strengthen," said a dealer at a private bank. "Selling interest by exporters also helped the rupee gain to 46.53," he said.

"Oil companies were also seen buying dollars," he said. In the forward-premia market, the six-month premium ended at 1.33 per cent (1.23 per cent) and the 12-month premium ended at 1.33 per cent (1.25 per cent).