The Hindu Business Line : Rupee strengthens

The rupee gained between 8 to 10 paise against the dollar on Tuesday as public sector banks sold dollars. The domestic currency opened at 40.30/31 and touched a low of 40.35/36 against the dollar, before closing at 40.28/30, against the previous close of 40.38. According to a forex dealer with a private bank, the rupee strengthened, as public sector banks sold dollars. There was also some amount of exporter selling, which also helped the rupee gain. "After the rupee lost, these levels seemed good for exporters to sell," the dealer said. As RBI is buying dollars heavily in the spot market, it has resulted in a cash-dollar shortage. Due to this the forward dollar contracts are trading at a discount, said the dealer. The six-month forward dollar is at a discount of 0.36 per cent (-0.42 per cent) and the 12-month forward premia ended at 0.11 per cent (0.11 per cent). - Our Bureau

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