Rupee dearer by 13 paise
Rupee on Wednesday closed at a fresh 9-1/2 year high of 39.3100/3150 against the greenback, dearer by 13 paise from previous close of 39.44/45 on consistent portfolio inflows into equity markets.
By PTI |
MUMBAI: Rupee on Wednesday closed at a fresh 9-1/2 year high of 39.3100/3150 against the greenback, dearer by 13 paise from previous close of 39.44/45 on consistent portfolio inflows into equity markets.
The rupee sentiment was also boosted by the absence of dollar demand from banks as well as oil corporates.
In quiet active trade at the Interbank Foreign Exchange (forex) market, the local currency moved in a range of 39.30 and 39.38 during the day after resuming firm at 39.32/34 a dollar due to lack of any intervention by the central bank to cap the rupee's surge.
The rupee last hit 39.30 level on February 26, 1998. Reports indicate that the Institute of Economic Growth expected the Indian unit to depreciate to 40.5 to a dollar in the next three months, mainly due to widening trade deficit failed to have any desired impact on the rupee movements.
According to the latest data of the Ministry of Commerce and Industry, the trade deficit during April-August this year widened to 32.5 billion dollars from 19.9 billion dollars in the same period last year.
Traders, however, feel that the Indian currency could touch 39 level in the near future due to unceasing portfolio inflows in the last fortnight. The inflows amounted to $ 16 billion so far in 2007, highest in any single year.
The benchmark Sensex today ended up by another 378 points at an all-time closing peak of 18,658.25.
The rupee sentiment was also boosted by the absence of dollar demand from banks as well as oil corporates.
In quiet active trade at the Interbank Foreign Exchange (forex) market, the local currency moved in a range of 39.30 and 39.38 during the day after resuming firm at 39.32/34 a dollar due to lack of any intervention by the central bank to cap the rupee's surge.
The rupee last hit 39.30 level on February 26, 1998. Reports indicate that the Institute of Economic Growth expected the Indian unit to depreciate to 40.5 to a dollar in the next three months, mainly due to widening trade deficit failed to have any desired impact on the rupee movements.
According to the latest data of the Ministry of Commerce and Industry, the trade deficit during April-August this year widened to 32.5 billion dollars from 19.9 billion dollars in the same period last year.
Traders, however, feel that the Indian currency could touch 39 level in the near future due to unceasing portfolio inflows in the last fortnight. The inflows amounted to $ 16 billion so far in 2007, highest in any single year.
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The benchmark Sensex today ended up by another 378 points at an all-time closing peak of 18,658.25.
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