Date:05/11/2008 URL: http://www.thehindu.com/2008/11/05/stories/2008110551931600.htm

Business

Rupee jumps 91 paise against $

Banks to consider lowering of lending rates

MUMBAI: The rupee on Tuesday gained 91 paise to close at one-month high of 47.73/74 against the greenback after bankers assured the government to consider lowering lending rates by about 75 basis points. It closed at 48.64/65 on Monday.

Finance Minister P. Chidambaram, who held a meeting with the heads of public sector banks, said several banks, including SBI, Bank of Baroda and UCO Bank, have promised to consider cutting benchmark lending rates.

The rupee has gained 222 paise against the dollar in the previous five trading sessions.

At the interbank foreign exchange market, the domestic currency traded in a wide range of 47.70 to 48.98 during the day. It virtually touched the 49-level in early trade as dollar demand from importers picked up amid inadequate supplies.The rupee premiums on forward dollar closed marginally higher on fresh paying pressure from banks.

The Reserve Bank of India (RBI), however, fixed the reference rate for the dollar at Rs. 48.62 and for the single European currency at Rs. 61.30.

In cross-currency deals, the rupee soared against the British pound sterling, the euro and the Japanese yen. — PTI