Date:09/07/2008 URL: http://www.thehindubusinessline.com/2008/07/09/stories/2008070951250600.htm

Back Rupee tad higher

Mumbai, July 8

The rupee appreciated marginally against the dollar on Tuesday after the stock markets recovered some of the initial losses. The wide fluctuations in the rupee could also be attributed to political uncertainty, said forex dealers. The domestic currency opened at 43.33/34 and touched an intra day low of 43.41/42. It closed at 43.26/27, against the previous close of 43.29/30.

Banks started selling dollars when the rupee crossed 43.40, seemingly on instructions from the Reserve Bank of India. This helped the rupee to stabilise, said a dealer with a private bank. Exporters were also seen selling dollars, he added. In the forward market, the 6-month premium closed at 4.23 per cent (4.52) and the 12-month ended at 3.75 per cent (3.95). –

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