Rupee steady against US dollar in early trade

Rupee steady against US dollar in early trade
PTI
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First Published: Fri, Apr 04 2008. 11 40 AM IST
Updated: Fri, Apr 04 2008. 11 40 AM IST
Mumbai: The Indian rupee held steady against the greenback during morning trade on Friday largely due to high inflation amid weak equity markets and dollar buying by public sector banks.
The central bank, however, was suspected to be buying dollar to prevent the rupee’s surge past the crucial 40 level.
In quiet trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 40.00/02 a dollar from its last close of 40.02/03 a dollar and later eased to last closing level on dollar buying.
Dealers said high inflation, which crossed the Reserve Bank’s tolerance level last month, provided underlying support to the Indian currency.
The central bank attempted to prevent any appreciation in the local currency against the dollar, they added.
Meanwhile, the dollar was modestly stronger against the Euro on Thursday in anticipation of slightly better US employment report than economists expect.
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First Published: Fri, Apr 04 2008. 11 40 AM IST
More Topics: Rupee | Greenback | Dollar | US | Dealers |