Thursday, May 21, 2009

Rupee Surges As A Result Of Paise To End At 47.47 - May 21, 2009

The rupee surged further by 31 paise to 47.47/48 against the dollar on May 20 due to fair demand of the dollar by the exporters in the face of sustained capital inflows into equity. The rupee sentiment was also boosted due to the encouraging growth outlook after the Congress-led UPA''s decisive victory in the general elections, raising hopes of a stable government.

The rupee has gained 4.62 per cent in the four-day winning streak on consistent portfolio inflows. In active trade at Interbank Foreign Exchange (forex) market, the rupee moved in a range of 47.46 and 47.95 after resuming weak at 47.90/91 a dollar from its previous close of 47.78/80 a dollar.

The Indian benchmark Sensex on Wednesday ended lower by 241 points or 1.69 per cent. The RBI fixed the reference rate for the US dollar at Rs 47.71 while for the euro at Rs 64.86. Moreover, the benchmark six-month forward dollar premium payable in October closed at 65-67 paise, up from 56-1/2-58-1/2 paise on Tuesday and the far-forwards maturing in April also closed up at 106-108 paise as against 96-98 paise previously.

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