The Indian rupee on Feb 5 shot up by nearly four paise to close at 48.77/79 against the US currency on dollar buying along with a weak dollar overseas. The domestic unit at the Inter-bank Foreign Exchange (Forex) market, resumed lower at 48.88/90 from the previous close of 48.81/82.
However, the expectations did not materialize and the rupee recovered smartly to 48.73 before concluding the day at 48.77/79.
The dollar was higher against the euro and British pound as markets awaited interest rate decisions in Europe. In Europe the Bank of England has reduced its lending rate to 1% from 1.50% later on Feb 5. The inflation fell to 5.07 per cent for the week ended January 24 After rising for two weeks, from 5.64 in the previous week, giving scope for the RBI to cut rates. The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 48.82 and for the euro at Rs 62.69.
However, the expectations did not materialize and the rupee recovered smartly to 48.73 before concluding the day at 48.77/79.
The dollar was higher against the euro and British pound as markets awaited interest rate decisions in Europe. In Europe the Bank of England has reduced its lending rate to 1% from 1.50% later on Feb 5. The inflation fell to 5.07 per cent for the week ended January 24 After rising for two weeks, from 5.64 in the previous week, giving scope for the RBI to cut rates. The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 48.82 and for the euro at Rs 62.69.
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