Rupee rules steady in late morning deals

Rupee rules steady in late morning deals


Mumbai: In lacklustre activity, the rupee ruled steady against the greenback in late morning deals at the Interbank Foreign Exchange (Forex) market amid weak global stock markets and expectations of increased inflows.

The local currency resumed hardly changed at 40.93/94 per dollar from overnight close of 40.9250/9350 and later moved in a range of 40.92 and 40.97 a dollar.

It was quoted steady at 40.9250/9350 in late morning deals in the absence of any major activity in the exchange market.

There was some dollar buying from oil refinery companies to meet their import requirements following higher global crude oil prices which spurted above $76 a barrel in Asian trade on 6 September.

However, the dollar supplies matched the demand as Foreign Institutional Investors (FIIs) have began to pump in the equity markets, forex dealers said.

FIIs picked up shares worth $454.20 crore in last three days since 31 August.

The benchmark Sensex showed signs of consolidation, giving no clear direction to the rupee.

According to analysts, looking at a robust economic growth and low inflation rate, the rupee will remain firm in the near future.