Date:06/10/2006 URL: http://www.thehindubusinessline.com/2006/10/06/stories/2006100602970600.htm

Back Rupee gains against dollar

Our Bureau

Mumbai, Oct. 5

The rupee strengthened against the dollar on Thursday on the back of strong dollar inflows into the equity markets.

The home currency opened at 45.70/71 and ended at 45.65, against Wednesday's 45.74. Dealers said dollar weakened against the major global currencies on the Fed Governor, Dr Ben Bernanke's statement that growth of the housing sector in the US was slowing down. The speech also hinted at US rates ruling unchanged. The Bank of England has left rates untouched.

"The rupee tracked the movement of other currencies against the dollar," said a dealer at private bank. In forwards, the six-month premium closed at 1.38 per cent (1.46 per cent) and the 12-month ended at 1.40 per cent (1.43 per cent).