Financial Daily from THE HINDU group of publications
Friday, Nov 08, 2002
Financial Daily from THE HINDU group of publications Friday, Nov 08, 2002 |
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Forex Money & Banking - Forex Rupee closes at 9-month high Our Bureau
MUMBAI, Nov. 7 THE rupee continued its appreciation closing at a nine-month high of 48.2850/29 against the US dollar on Thursday. This is comparable to January 24, 2002 levels when the currency had opened at 48.28/29 and had closed at 48.34. On Wednesday, the currency closed the day at 48.33/3350 against the greenback. Heavy dollar inflows led to over 4 paise appreciation and the currency broke the `48.30 support level', which had been protected for quite some time. In addition to the the long Diwali weekend, even though the forex market remained closed only on Monday, most corporates observed holidays on Tuesday and Wednesday, which prevented banks from selling dollars on their behalf," said Mr Sharukh Wadia, Senior Vice-President, Head-Treasury, IndusInd Bank. "Today, both foreign and public sector banks were seen selling dollars. The selling was customer-driven," said Mr Wadia. Heavy inflows and players unwinding their positions ahead of the Monday holiday (November 11) in New York had contributed to this appreciation, said Mr P. Mukherjee, Senior Vice-President, Treasury, UTI Bank. Market watchers expect the currency to go up to 48.25-48.31 levels in this week. News reports of HSBC Bank bringing in capital had also led to hopes of further appreciation of the currency due to dollar selling, said a forex dealer in a private sector bank. The currency opened the day at 48.33, touched an intra-day high of 48.2850 and an intra-day low of 48.3475 against the dollar. The forwards market experienced some volatility due to the 50 basis points Fed rate cut to 1.25 per cent. Although the cut was `steep', the forwards closed marginally higher with the six months premium closing at 4.13 per cent.
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