The Hindu Business Line : Rupee gains on easing of ECB norms

The rupee substantially appreciated against the dollar reacting to liberalisation measures for external commercial borrowings and FII investments. The domestic currency opened stronger at 42.52/53 and fell to 42.61. It then rose to finally end the day at 42.45 against the dollar, against the previous close at 42.78/79.

Forex dealers said that the easing of curbs on external commercial borrowings as well as FII investments was taken as a positive cue for more dollar inflows in the forex market.

Earlier in the day, oil companies and bullion traders bought dollars which drove the rupee to weaken to 42.61. However, dollar supplies helped the rupee end the day higher by around 35 paise. “There was all round dollar selling from corporates, exporters and banks,” said a forex dealer at a private bank. In the forward premia market, the 6-month closed at 2.26 per cent (2.57) and the 12-month ended at 1.76 per cent (1.88).

— Our Bureau

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