Date:21/06/2008 URL: http://www.thehindu.com/2008/06/21/stories/2008062155551600.htm

Business

Rupee gains against $

MUMBAI: In lacklustre trading in forex market on Friday, the rupee gained 3.50 paise to the dollar at 42.93/94 on the back of dollar selling by exporters.

At the interbank foreign exchange market, the rupee opened higher at 42.9350/9550 a dollar and was trapped in a narrow range of 42.93 and 42.98 before ending at 42.93/94, up by 3.50 paise from Thursday’s close of 42.9650/9750.

Forex dealers said a weak dollar against its major rivals also helped the rupee sentiment. Lack of any dollar demand from oil refiners also pushed the rupee upwards as global crude oil prices fell to $132 a barrel in New York on Thursday.

The domestic currency was also aided by spiralling inflation as expected more stringent monetary measures by the apex bank in the near future might suck out funds of the banking system, a forex dealer said.

The rupee premiums on forward dollar remained strong and ended further sharply higher due to continued paying pressure from banks and corporates. — PTI