Date:09/11/2006 URL: http://www.thehindubusinessline.com/2006/11/09/stories/2006110901780600.htm

Back Rupee gains a tad

Our Bureau

Mumbai, Nov 8

The rupee gained marginally but closed lower than the day's high. Dealers said the central bank was seen buying dollars, causing the rupee to weaken.

The rupee opened at 44.65/66 and touched a high of 44.6350 before closing at 44.69/70 against the previous close of 44.72/73. The domestic equity market closed lower, but it was unlikely to affect the rupee, said a forex dealer. If dollar supplies dry up in the next few days, then the stock market movements could impact the rupee, he added. "The rupee touched an important support level at 44.65. This level is unlikely to break easily. Sentiment is in favour of the rupee," the dealer said.

Other currencies hardly moved against the dollar. Forward premia were steady with the six-month closing at 1.81 per cent (1.79 per cent) and the one-year closing at 1.7 per cent (1.72 per cent).