Date:21/06/2007 URL: http://www.thehindubusinessline.com/2007/06/21/stories/2007062105010600.htm

Back Re strengthens on dollar weakness

Our Bureau

Mumbai, June 20

The rupee slightly appreciated against the greenback aided by dollar inflows in the domestic market and buoyed by the overseas weakness of the dollar. The domestic currency opened at 40.80/82 and touched an intra-day low of 40.86. It closed the day at 40.75, against Tuesday's close at 40.81.

Dealers said the rupee was weak earlier in the day as there was corporate demand as well as some oil related buying. It was also aided by the weakening of the dollar against other major currencies. The sterling climbed against the dollar as the minutes of Bank of England's policy committee meeting showed that the Governor and three other members voted in favour of an interest rate hike.

"The global weakness of the dollar aided the rupee. Besides, the ample rupee liquidity in the system meant it prevented the RBI from intervening in the forex market," said a dealer at a private bank. In forwards, the six-month premium closed at 2.81 per cent (2.82) and the 12-month ended at 2.73 per cent (2.75).