Date:13/09/2007 URL: http://www.thehindu.com/2007/09/13/stories/2007091354922000.htm

Business

Fresh rise in rupee

MUMBAI: The rupee on Wednesday ended at more than one-month high of 40.44/45 against the U.S. currency, dearer by 12 paise over Tuesday’s close of 40.56/57 following fairly heavy capital inflows amid weak dollar overseas.

The absence of dollar demand from oil refiners also aided the rupee sentiment, forex dealers said.

In fairly active trade at the interbank foreign exchange market, the local currency resumed firm at 40.51/52 a dollar and gradually surged towards a nine-year high, riding on sustained FII inflows into equity markets and expectations of more portfolio inflow into the capital market.

Extending its surge to sixth consecutive day, the Indian currency remained bullish as oil companies shied away from the forex market in the light of high global crude oil prices.

Traders expected nearly $500 million inflow through the ongoing initial public offer by a state-run Power Grid Corporation of India. — PTI