Our Bureau

Mumbai, Nov. 10

Sustained dollar buying by state-run banks pulled the rupee down from its opening high of 44.32/33 to close at 44.71/7150 on Friday against the previous close of 44.55. "State-run banks bought dollars throughout the day at the instance of the Reserve Bank of India," said a forex dealer.

It is evident from the fact that the dollar weakened against other currencies. Market participants are hopeful of the rupee bouncing back next week and touching 44.10/15 by end-November. . Evidence of the rupee's inherent strength is seen in the rates appreciating from 44.90 to around 44.30 in a week's time. "But for the intervention by RBI, the rupee may have touched 44.20," the dealer added. The six-month forward premium closed at 1.77 per cent (1.99 per cent) and the one-year closed at 1.72 per cent (1.81 per cent).

© Copyright 2000 - 2009 The Hindu Business Line