The Hindu Business Line : Rupee firmer against dollar

The rupee on Thursday appreciated against the greenback due to dollar selling by exporters. The home currency opened at 46.75/77 a dollar and touched an intra-day low of 46.7850. It, however, closed the day higher at 46.56/57 against the Wednesday's close of 46.70. Dealers said that exporters saw a good opportunity when the rupee touched its intra-day low. "The rupee touched a resistance level after which there was hectic dollar-selling," said a dealer. Globally, the dollar is expected to weaken against other currencies on Friday, following the hike in interest rates by the Bank of England and the European Central Bank. The outlook for the rupee was also positive, said dealers. "The rupee is likely to appreciate in the medium term as foreign institutional investors are likely to head towards the emerging markets. The domestic currency may strengthen to 45.50 by December, 2006," said the chief forex dealer at a private bank. In the forward premia market, the 6-month closed at 1.03 per cent (1.02 per cent) and the 12-month ended unchanged at 1.14 per cent.