Monday, April 28, 2008

Rupee Gains 5 Paise Against Dollar

The Indian rupee gained five paise on Friday at 40.12/13 against the greenback as the strong equity markets raised hopes of fresh capital inflows, major driver behind the local currency, amid easing oil prices.

The domestic unit moved widely in a range of 40.1050 and 40.2450 on alternate bouts of dollar buying and selling during the day after resuming steady at its overnight closing level of 40.17/18 a dollar. Rupee drew support from strong equity market where the benchmark Sensex on Bombay Stock Exchange rose by 405 points or 2.42 per cent at at 17,125.98 points, a level not seen in almost two months.

Forex dealers said oil companies were buying dollars ahead of the month-end for their monthly import payments. However, demand for the American currency was well matched as exporters sold dollar at the day''s higher levels, said a dealer with a foreign bank. A fall in global oil prices also had a soothing impact on the rupee sentiment. World oil prices, which had threatened to break the symbolic 120-dollar-a-barrel level, were traded at USD 115.60 per barrel in Asian trade today following a recovery US dollar and rise in US crude stockpiles.

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