Rupee ends stronger at 40.9250/9350 vs dollar

Rupee ends stronger at 40.9250/9350 vs dollar
PTI
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First Published: Wed, Sep 05 2007. 06 15 PM IST
Updated: Wed, Sep 05 2007. 06 15 PM IST
Closing
Mumbai: The rupee ended at 40.9250/9350 against the greenback on 5 September, stronger by five paise from previous close of 40.9750/9850, in anticipation of increased inflows amid some dollar demand from oil refiners.
In dull trade at the Interbank Foreign Exchange (forex) market, the rupee moved in a narrow range of 40.90-40.94 after resuming firm at 40.90/91 a dollar.
There was consistent dollar buying in the exchange market, prompted by soaring crude oil prices, which hovered around $74 a barrel in Asian trade, forex dealers said.
They said inflows and outflows was nearly matching as Foreign Institutional Investors (FIIs) stepped up activity in equity markets the last three days after a massive pull out in August. FIIs pumped in $298.20 million between 31 August and 3 September.
Meanwhile, analysts expect India’s trade deficit to widen in coming months as the oil import bill increases due to high crude prices and the stronger rupee hits exports, which in turn could put pressure on the local currency.
The country’s strong economic growth and low inflation rate seemed favourable for the rupee.
Morning
Mumbai: The rupee showed signs of recovery with a firm start against the US currency on fresh dollar demand by oil refiners amid expectations of increased inflows into the equity markets.
In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed strong at 40.90/91 per dollar from 4 September’s close of 40.9750/9850 per dollar but later met with resistance and was quoted at 40.93/94 in late morning deals.
The forex market witnessed consistent dollar demand prompted by soaring crude oil prices, which was quoted at $74 a barrel in Asian trade, forex dealers said.
The inflows and outflows, however, are expected to match as Foreign Institutional Investors (FIIs) again started making investments in equity after a massive pull out in August.
FIIs pumped in $298.20 million on 31 August and 3 September in the equity markets.
Meanwhile, analysts expect India’s trade deficit to widen in coming months as the oil import bill increases due to high crude prices and the stronger rupee hits exports, which in turn could put pressure on the local currency.
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First Published: Wed, Sep 05 2007. 06 15 PM IST
More Topics: Rupee | Dollar | Money Matters | Currency |