Rupee opens firm, sheds early gains
The Indian unit sacrifices some of early gains due to demand for greenbacks by oil firms in anticipation of oil price hike.india Updated: Aug 02, 2006 13:04 IST
The rupee on Wednesday resumed firm against the US currency but later trimmed the gains in late morning deals on dollar demand from oil companies amid rising oil prices.
In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit opened higher at 46.50/54 to a dollar from overnight close of 46.59/60 to a dollar. However, the rupee later came under pressure from some dollar demand and was quoted at 46.5600/5650 to a dollar in late morning dealings.
Crediting the firm beginning to exporters' dollar sales, forex dealers said the rupee later gave up part of its gains as some public sector banks purchased dollar on behalf of oil companies, which anticipate higher import payment in the light of rising crude oil prices.
The rupee is expected to see resistance at higher levels during the day, a leading banker said.
"Activity remained at a low ebb and the weakening dollar overseas did not have much impact on the rupee," he said.
Oil prices jumped back above $75 in Asian trade on Wednesday as hopes for a quick ceasefire in Lebanon faded while concerns grew at the approach of a tropical storm in the United States.