• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mumbai: THE rupee ended on Monday at thirteen month's high, almost 6 paise stronger at 47.9350/9450 against the dollar as compared to its previous close of 47.9900/9950.

Good supplies of the dollar combined with heavy selling of the greenback by banks across the board are attributed to today's appreciation of the currency.

"There is more room for appreciation of the rupee,'' said Mr P. Mukherjee, Senior Vice-President, Treasury, UTI Bank.

The country's forex reserves touching $69.508 billion for the week-ended December 20, 2002, is a very strong sign for the domestic currency, contend forex dealers.

The domestic currency was seen at comparable levels of December 5, 2001, when it closed at 47.9150 against the dollar. The currency then went through a highly volatile period to touch its lowest this year at 49.0 on June 14.

From there, it staged an uphill movement with dollar inflows continuing unabated.

With the dollar steadily weakening, banks were dumping the greenback in the market, which saw the rupee jump, said a forex analyst.

State-run banks were seen buying the dollar up to 47.96 levels, after which they let the currency strengthen.

The rupee opened at 47.9850/9900, touched an intra-day high of 47.9250 and an intra-day low of 47.9850/9900, the opening level of the day.

In the forward market, the premia were seen falling which dealers attribute to the falling yields in the debt markets.

The six months premium closed at 3.53 per cent (3.64 per cent) and the one-year premium closed at 3.40 per cent (3.39 per cent).

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Rupee gains 6 paise

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line