Date:05/07/2008 URL: http://www.thehindu.com/2008/07/05/stories/2008070551521600.htm

Business

Rupee gains 15 paise

MUMBAI: The rupee gained 15 paise to close at 43.15/16 against the U.S. currency after a smart rally in equity markets and on some dollar selling by foreign banks.

In active trading at the interbank foreign exchange market, the rupee opened slightly better at 43.25/26 and improved further to settle at 43.15/16 against Thursday’s close of 43.29/31 a dollar.

Forex dealers said rupee drew support from a firm trend in equity markets.

However, they added that rupee was expected to remain under pressure as crude oil prices remained high over $144 a barrel in Asian trade.

Selling dollars at higher levels by some foreign banks also boosted rupee sentiment.

The Reserve Bank of India, however, fixed the reference rate for dollar at 43.21.

The rupee premiums on forward dollar remained sluggish and ended further lower on sustained receiving by exporters.

The six-month forward dollar premium payable in December ended at 95-97 paise, slightly down from 96-99 paise on Thursday. — PTI