• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mumbai, May 9

The rupee closed about 15 paise higher in a choppy market that saw both way movements. The rupee opened flat at 41.70 on lack of cues, but soon fell to 41.76, which was the day’s low. At those levels there was heavy dollar selling by large corporates such as L&T and exporters, which pushed the rupee to the day’s high of 41.32. Oil companies like IOC and HPCL then started buying dollars, which pushed the rupee down towards 41.59/60 at close, against the prev ious level of 41.75/76. “The rupee should remain weak because inflation is high and oil price is also high,” said the chief forex dealer with a public sector bank. The dollar was strong against other major currencies such as euro, pound and yen. In the forward premia market, the six-month closed at 1.21 per cent (1.6 per cent) and the 12-month closed at 1.11 (1.40 per cent). “Exporters who sold dollars in the spot market received premia in the forward market,” said the dealer. Next week, the rupee may touch levels of 42 due to negative factors such as lack of capital inflows into the equity market and the government admitting that it may take 7-8 weeks for inflation to stabilise, said the dealer.

— Our Bureau

More Stories on : Forex

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Forex reserves fall $371 m

Copyright © 2008, 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