Rupee rises on lower oil

Rupee rises on lower oil
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First Published: Wed, Jul 30 2008. 09 37 AM IST
Updated: Wed, Jul 30 2008. 09 37 AM IST
Reuters
Mumbai: The rupee rose on Wednesday, helped by lower oil prices and on expectations of a rise in shares after global markets rallied.
US crude was trading at 12-week lows just above $122 a barrel.
At 9.08 a.m., the partially convertible rupee was at 42.55/57 per dollar, stronger than Tuesday’s close of 42.64/65. In early deals it hit a high of 42.51.
The central bank said it was ending a two-month-old scheme of providing foreign exchange to oil companies in return for oil bonds. This could lead to some dollar demand from refiners, who are the biggest buyer of the US currency in the Indian market.
The central bank also raised its benchmark rate by 50 basis points on Tuesday to its highest in seven years and hiked the cash reserve ratio, delivering a bigger-than-expected tightening to quell double-digit inflation.
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First Published: Wed, Jul 30 2008. 09 37 AM IST
More Topics: Markets | India | rupee | oil | currency |