Rupee recovers early losses, down by 3 paise against dollar
The Indian rupee on Wednesday recovered a major part of early losses but still ended marginally lower by three paise at 50.73/75 against the dollar on a strong rally in local share markets.business Updated: Mar 25, 2009 19:25 IST
The Indian rupee on Wednesday recovered a major part of early losses but still ended marginally lower by three paise at 50.73/75 against the dollar on a strong rally in local share markets.
In range-bound but volatile trade at the Interbank Foreign Exchange (Forex) market, the local unit resumed sharply lower at 50.94/95 a dollar from the previous close of 50.70/71 per dollar.
In morning trade it touched a low of 51.10 due to heavy dollar demand from oil refiners and importers to meet their month-end requirements. But it recovered later to the day's high of 50.68 on firm equity markets amid expectations of increased capital inflows.
The Indian benchmark Sensex on Wednesday ended higher by another 197 points or 2.08 per cent on hectic short-coverings while Asian indices finished narrowly mixed.
The rupee was down by 25 paise on March 24. Global crude oil prices were trading at over $53 a barrel in Asian trade on Wednesday. According to analysts, the fall in the rupee might cap due to sustained capital inflows as foreign institutional investors were net buyers on March 24 as per provisional data.