Financial Daily from THE HINDU group of publications
Tuesday, Sep 23, 2003
Financial Daily from THE HINDU group of publications Tuesday, Sep 23, 2003 |
|
|
|
|
|
|
|
Home Page
-
Forex Money & Banking - Forex Rupee rides high on weak dollar Our Bureau
Mumbai , Sept. 22 AS the dollar took a beating against all major international currencies, the Indian rupee has made a dramatic recovery of 18 paise on Monday to close at Rs 45.75/76 against the dollar. The rupee had been losing strength all of last week following the central bank's measures to restrict `leveraged' foreign exchange inflows into the country. There had also been apprehensions in the market regarding the maturing of the Resurgent India Bonds (RIBs), which now seem soothed. On Friday, the currency had ended the day at Rs 45.93/94. The rupee on Monday opened at Rs 45.90/92 and appreciated throughout the day with foreign banks selling dollars heavily in the market, said dealers. "The rupee has strengthened basically due to two reasons today, the dollar's fundamental weakness and expectations of good inflows into the local markets. The greenback lost ground against the Japanese Yen, Euro, Sterling Pound and against the rupee. There is also an expectation in the market that despite the recent measures taken by the RBI — the cap on NRE deposit rates and bar of overseas corporate bodies as an investor class — dollar inflows will continue," said Mr Sharukh Wadia, Senior Vice-President, Head-Treasury, IndusInd Bank. The dollar took a nosedive following the G-7 meeting of the top industrialised nations in Dubai; there were views that foreign exchange rates should be determined by foreign exchange inflows and not be kept fully insulated as in the case of the Chinese Yuan. The weakness of the dollar is expected to continue with unemployment rates in the US remaining high at over six per cent, said a forex dealer in a foreign bank. A section of the market feels that the sentiment in the local market is now positive.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|