Rupee climbs as dollar crunch eases

Rupee climbs as dollar crunch eases
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First Published: Thu, Feb 07 2008. 10 55 AM IST
Updated: Thu, Feb 07 2008. 10 55 AM IST
Mumbai: The rupee inched higher on Thursday, as the market liquidated some long dollar positions in the absence of strong cues from many Asian markets that were closed for a public holiday.
At 10 am, the partially convertible rupee was at 39.47/48 per dollar, gaining from its previous close of 39.515/525, a session where it hit a two-week low of 39.69.
“In the past two-three days there has been a dollar shortage but today cash conditions have improved,” said a senior dealer with a private bank.
Lunar New Year holidays brought trading in much of Asia to a halt, with markets in China, Hong Kong, South Korea, Singapore, Malaysia and Indonesia closed until next week.
The lack of overseas cues from Asia had crimped currency trading volumes, local dealers said.
India’s benchmark share index was trading weaker for the second straight day, taking direction from weak global markets that were concerned about a gloomy economic outlook for the United States.
Another dealer with a private bank said the central bank had sold dollars to ease a crunch, though the market was inconclusive about the central bank’s role.
Till this week, the Reserve Bank of India has widely been seen as playing an active role in capping the rupee’s rise. The central bank bought $72.1 billion in the first 11 months of 2007.
Early Morning Update
Mumbai: The rupee was mostly unchanged in early deals on Thursday in the absence of cues from many Asian markets, closed for a holiday, though concerns about capital inflows weighed.
At 09:08 a.m., the partially convertible rupee was at 39.49/50 per dollar, gaining a touch from the previous close of 39.515/525, and recovering from a two-week low of 39.69 during early trading on Wednesday.
Lunar New Year holidays brought trading in much of Asia to a halt, with markets in China, Hong Kong, South Korea, Singapore, Malaysia and Indonesia closed until next week.
Indian shares are expected to trade weaker for the second straight day, taking cues from weak global markets, impacted by a gloomy outlook for the United States, the world’s top economy.
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First Published: Thu, Feb 07 2008. 10 55 AM IST
More Topics: Markets | India | Rupee | Dollar | Asian |