The Hindu Business Line : Rupee gains marginally

The rupee gained by about 10 paise against the dollar on Wednesday to close below 46, a level last seen three months ago. A stronger Japanese yen and a downward movement in oil prices aided the domestic currency. Last time the rupee closed below 46 was on July 10. On Wednesday, there were good inflows, as FIIs bought shares in the domestic equity market and corporates sold dollars, said a dealer with a private bank. The rupee opened at 46.07/08 and closed at 45.97 against the previous close of 46.08. "The volumes in the forex market were good as there was a lot of speculative dollar selling. Though several corporates also bought dollars, the supply of dollars was great," said the dealer.

The forward premia were slightly lower with the six-month premium closing at 1.21 (1.23 per cent) and the 12-month closing at 1.25 per cent (1.25 per cent).According to the dealer, the new cap for the rupee could be 46.10 and 45.95 could be the new support level. "If the euro gains against the dollar and if yen also strengthens then on Thursday the rupee could touch 45.90. The data coming out of the US is not very encouraging for the dollar right now," he said.

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