Re rally keeps exporters on tenterhooks
The Indian unit opened steady, but shot up on sustained dollar selling.
By PTI |
Mumbai: The rupee continued its upward march and appreciated further to 41.85/87 against US currency in late morning deals following sustained portfolio inflows amid absence of intervention of the central bank.
In volatile trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened steady at 41.91/93 per dollar from Monday's close of 41.90/92 a dollar.
But it shot up to 41.65 on sustained dollar selling by banks to meet rupee requirements following liquidity crunch in the banking system.
Later, the rupee reacted downward on some dollar buying by oil companies as well as importers and was quoted at 41.85/87 a dollar in late morning deals, still showing gains over previous close.
The call money rates also flared up over 15 per cent in early trade which forced banks to sell dollars for rupees to meet funding requirements.
The rupee sentiment also got boosted by absence of any intervention by the Reserve Bank of India (RBI).
Foreign Institutional Investors (FIIs) reportedly pumped in over USD 364 million in equities last week.
India's foreign exchange reserves rose above USD 200 billion for the first time in April, indicating robust foreign funds inflows, which ultimately had a negative impact on the dollar sentiment.
In volatile trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened steady at 41.91/93 per dollar from Monday's close of 41.90/92 a dollar.
But it shot up to 41.65 on sustained dollar selling by banks to meet rupee requirements following liquidity crunch in the banking system.
Later, the rupee reacted downward on some dollar buying by oil companies as well as importers and was quoted at 41.85/87 a dollar in late morning deals, still showing gains over previous close.
The call money rates also flared up over 15 per cent in early trade which forced banks to sell dollars for rupees to meet funding requirements.
The rupee sentiment also got boosted by absence of any intervention by the Reserve Bank of India (RBI).
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Foreign Institutional Investors (FIIs) reportedly pumped in over USD 364 million in equities last week.
India's foreign exchange reserves rose above USD 200 billion for the first time in April, indicating robust foreign funds inflows, which ultimately had a negative impact on the dollar sentiment.
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