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Thursday, Aug 29, 2002

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Rupee up, breaches 48.50

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MUMBAI, Aug. 28

THE rupee closed higher on Wednesday, touching a seven-month high at 48.4825/4875, against the dollar as compared to Tuesday's close of 48.50/5025 in the forex market.

Contrary to the expectations of several market experts, the psychological barrier level of 48.50 was broken today. On January 29, the rupee was at comparable levels with the currency having closed at 48.41 against the dollar and on January 30 at 48.5051/50.

The appreciation of the currency has been on for months now, due to heavy supply of dollar and lack of demand for it, said Mr Sharukh Wadia, Senior Vice-President, Head - Treasury, IndusInd Bank.

"Nationalised banks were seen buying the dollar to cap the appreciation. The Reserve Bank of India is controlling the extent of appreciation of the currency,'' said Mr R.V.S. Sridhar, Chief Dealer, Money & Forex, UTI Bank.

Further appreciation of the rupee would depend on how much the RBI would allow it to, said Mr Sridhar. The rupee opened higher on Wednesday as compared to Tuesday's close at 48.50/49 due to surplus of dollars in the market. The intra-day high was 48.4750 and the intra-day low at 48.4950.

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