Date:19/03/2008 URL: http://www.thehindu.com/2008/03/19/stories/2008031960722200.htm

Business

Rupee recovers

MUMBAI: The rupee on Tuesday recovered sharply by 21 paise to close at 40.51/52 against the greenback amidst expectations of a big rate cut by the U.S. Federal Reserve, which could lead to huge dollar inflows into the country.

Forex dealers said besides expectations of capital inflows, which could strengthen rupee sentiment, a weak dollar overseas against key its rivals also played a part in the local unit’s appreciation.

At the interbank foreign exchange market, the rupee opened higher at 40.64/66 a dollar, against its last close of 40.72/73, on account of stability in stock markets. It later improved further to end the day at 40.51/52 in tune with the movements in bourses. — PTI