BUSINESS

Partial recovery in rupee

MUMBAI, AUG. 4. Healthy trade inflows and sporadic dollar sales by public sector banks today helped the rupee recover partly against the U.S. currency in tight range-bound business at the interbank foreign exchange market, affected by heavy rains which disrupted road and rail traffic.

Closing at 46.36/37 a dollar, the rupee rallied by four paise from overnight closing of 46.39/41 after it was confined to a narrow band of 46.36 and 46.40 in quiet trading. It opened on a positive note at 46.38/40.

The rupee declined by over five paise yesterday on a late round of hectic dollar short-covering by oil companies amidst a sudden resurgent dollar overseas.

The forex spot trading was dull and range-bound due to thin attendance in dealing rooms because incessant heavy rains disrupted road and rail transport.

Moderate exporter dollar sales and unwinding of long dollar positions by state-owned banks in the absence of follow-up demand for the greenback aided a mild rupee rally, dealers said. The rupee outlook, however, remains bearish due to persistent rising global oil prices and a slowdown in foreign fund inflows, they added.

Crude oil prices were hovering around 21 year peak of $44.20 a barrel in Asian trading at the New York Mercantile Exchange due to supply constraints.

— PTI

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