Rupee Cuts 3 Sessions Of Rise Cataract Of 4 Paise - July 29, 2009

The Indian rupee on July 28 fell by four paise against the dollar on account of month-end demand for the US currency as well as weakness in local equity markets. At the Interbank Foreign Exchange market, the rupee resumed lower at 48.23/24 a dollar from its overnight close of Rs 48.16/17 a dollar. The forex dealers said that importers, mainly oil refiners, were seen purchasing dollars for their month-end import payments putting some pressure on the rupee.

The rupee later moved in a range of 48.13 and 48.3050 a dollar before closing at 48.20/21. The Indian benchmark Sensex ended lower by 43.10 points or 0.28 per cent.

Moreover, the dealers further added that the investors remained sidelined ahead of the announcement of the RBI''s quarterly monetary policy review.

But after the announcement, the dealers termed it a non-event as the Central bank kept the key interest rates unchanged and increased the inflation forecast to five per cent by end March 2010 from earlier four per cent.

Rupee Be Glad About Marginally Against US Dollar - July 24, 2009

The Indian rupee on July 23 rose by 7.50 paise to close at 48.4450/4550 against the US currency mostly on account of a smart rise in equity markets amid a weak dollar overseas. At the Interbank Foreign Exchange market, the rupee resumed higher at 48.40/42 a dollar against Wednesday''s close of 48.52/53.

The rupee later it moved in a range of 48.32 and 48.50 per dollar before concluding the day at 48.4450/4550 and the rupee gained momentum due to a smart rebound in the Indian Benchmark Sensex, which surged by 387.92 points or 2.61 per cent.

The Asian indices also displayed a firm trend at close on Thursday. Also the weakness of dollar against the major world currencies also aided rupee sentiment.

The expectation of increased capital inflows in the capital markets after firm trends in local equity markets also boosted rupee sentiment.

As per the Sebi data, in the last seven days, the capital inflows amounted to $12.30 million.

However, the Reserve Bank of India fixed the reference rate for the US dollar at Rs 48.44 while for the euro at Rs 69.07.

The rupee premiums on the forward dollar closed further lower. The benchmark six-month forward dollar premium payable in December closed at 47-1/2-49 paise, down from 49-51 paise on Wednesday while the far-forwards maturing in June also ended lower at 97-1/2-99 paise from 100-102 paise previously.