Date:08/11/2008 URL: http://www.thehindu.com/2008/11/08/stories/2008110861092100.htm

Business

Rupee ends higher against $

MUMBAI: The rupee on Friday appreciated by eight paise to 47.64/65 against the U.S. currency in sync with a bounce in domestic stocks on hopes of revival in capital inflows.

In active trading at the interbank foreign exchange market, the domestic currency resumed lower at 47.95/96 against its previous close of 47.72/73, but gradually recovered as equity markets turned firm following a rise in infrastructure output in September, which partly offset concerns about economic slowdown. Forex dealers said the rupee rebounded largely because of a recovery in domestic stocks raising hopes of capital inflows into equity market after Bank of England and the European Central Bank slashed key rates by 150 basis points and 50 basis points respectively.

They said the exchange market witnessed sustained dollar demand from oil companies. — PTI