Rupee Gains 4 Paise, Ends At 48.77 - Feb 6, 2009

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.

Bank Of India Was Seen Selling At Levels - Sep 25, 2008

The rupee opened at 45.75/77 and closed at 45.95/96, down 50 paise from the previous close of 45.44/45. A forex dealer with a private bank said that Reserve Bank of India was seen selling at levels of 46.10. A dealer with a large PSU bank said the bank only covered its customer transactions and stayed away from the regular trading in the forex market. In the forward premia market, six-month closed at 1.62 per cent (1.6 per cent) and the 12-month closed at 1.33 per cent (1.34 per cent).