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Rupee hits new 38-month peak against US Dollar
By siliconindia
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Wednesday, 08 October 2003, 19:30 IST
MUMBAI: Strong foreign fund inflows together with a weak dollar overseas, drove the rupee past the crucial 45.30-dollar barrier and hit a new 38-month peak at 45.2850/2950 in late morning deals.
In moderately active trade at the Interbank Foreign Exchange (forex) market in Mumbai on Wednesday morning, the rupee gain by yet another four paise from Tuesday's close of 45.32/33, following persistent heavy dollar supplies, mainly from Foreign Institutional Investors (FIIs) inflows.
The rupee opened on a firm footing at 45.30/31 per dollar.
Robust trade and capital inflows continue to strengthen rupee and drive it to new heights practically every day, despite sporadic dollar demand from state-run banks, possibly the behest of the central bank in order to contain the sharp gains, a forex dealer said.
Despite widening of the current account deficit, the future outlook of the rupee remained distinctly positive. A lingering weak dollar against major global currencies was also helping rupee gain, he added.
In cross currency trades, the Euro was quoted at 53.39/41, Pound Sterling at 75.45/47 and the Japanese Yen (100) 41.11/13.