Rupee strengthens as exporters sell dollars

Rupee strengthens as exporters sell dollars

Mumbai: The rupee retreated from a two-week low in afternoon trade on Wednesday helped by exporter dollar sales after the unit slipped beyond the Rs49 per US dollar mark earlier in the session.

At 2:45pm, the partially convertible rupee was at Rs48.25/30 per dollar, off a low of Rs49.20 and stronger than its previous close of Rs48.78/81. It strengthened to Rs47.75 per dollar earlier on Wednesday.

Dealers said dollar demand from oil refiners which was seen in early trade had dried up, also helping the rupee. The dollar’s weakness overseas also helped sentiment.

The US dollar slipped against the Japanese yen and a basket of currencies in thin trade on Wednesday as investors braced for US data that may add to the grim outlook for the nations economy.

However, dealers added that the volume in the market was very low as most foreign banks had already closed their trading books for the year.