Rupee softens two paise to end at 49.28 against dollar
The Indian rupee on Friday softened by just two paise to close at 49.28 against the dollar due to weak local equity markets, despite heavy capital inflows.business Updated: May 08, 2009 19:58 IST
The Indian rupee on Friday softened by just two paise to close at 49.28 against the dollar due to weak local equity markets, despite heavy capital inflows.
At the Interbank Foreign Exchange (Forex) market, the local unit resumed lower at 49.40/41 a dollar from its last close of 49.26/27 per dollar.
It later touched a low of 49.46 a dollar on bearish local equity markets. The Indian benchmark Sensex was down by nearly 352 points in mid-session trade.
However, some recovery at the fag end in equities pulled the rupee to a high of 49.22 before ending the day at 49.28/29 a dollar.
The Indian benchmark Sensex, however, ended lower by 240.51 points or 1.98 per cent. On Thursday the rupee was up by 35 paise to close at a two and a half month high of 49.26/27.
However, besides Singapore, other Asia stock markets displayed a firm trend at close today while European indices also were strong in their opening deals.
Foreign institutional investors (FIIs) pumped in nearly USD 650 million in the current month so far, which also later supported rupee recovery.
Meanwhile, global crude oil prices were trading near USD 58 a barrel in Asian trade today.