The Hindu : Rupee at new peak

Online edition of India's National Newspaper
Saturday, Jun 28, 2003

Business

Business

Rupee at new peak

MUMBAI JUNE 27. The rupee spurted against the U.S. currency and climbed to an over 28-1/2-month closing peak of Rs. 46.3950/40 a dollar today, propelled by robust trade and capital inflows, despite a feeble central bank intervention to contain its rise. Notching up a whopping 14 paise gain from Thursday's finish of Rs. 46.5350/5450, the rupee tested intraday highs of Rs. 46.39/40 on heavy exporter dollar sales and unwinding of long dollar positions ahead of the weekend.

It opened weak at Rs 46.53/56 a dollar and in spite of dollar-buying by state-run banks, possibly on behalf of the Reserve Bank of India, broke through key resistance levels and surged to new peaks, dealers said.

``At around 46.53/54-dollar levels, public sector banks were bidding the dollar in early trade to arrest the rupee rise, but relentless heavy dollar sales by exporters, led to liquidation of long dollar positions by banks, sending the rupee to new heights,'' a dealer said.

``If the current trend persists, the rupee could breach the 46.30-dollar barrier on Monday,'' he added. — PTI

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