Rupee dips by 3 paise on fresh capital outflows
The Indian rupee today fell marginally by 3 paise to close at 46.24/25 against the US dollar on fresh capital outflows following recovery of the US currency in overseas markets.business Updated: Feb 23, 2010 19:07 IST
The Indian rupee today fell marginally by 3 paise to close at 46.24/25 against the US dollar on fresh capital outflows following recovery of the US currency in overseas markets.
At the Interbank Foreign Exchange market, the local unit shot up to a high of 46.06 in early trade due to dollar selling by exporters and banks on expectations of further weakness in the American currency in near term.
But the dollar recovered from a session low today against a basket of currencies, suggesting investors were wary of taking on positions ahead of US federal Reserve Chairman Ben Bernanke's testimony, which begins on Wednesday.
The US dollar yesterday briefly turned higher versus the euro in New York and stayed near an eight-month high against other major currencies.
Month-end dollar demand from importers, mainly oil refiners, to meet their import requirements after the midsession weighed on the rupee and it fell back to 46.26 per dollar before ending the day at 46.24/25.
The Indian benchmark sensex improved further by another 49.27 points or 0.30 per cent but the market was cautious ahead of the upcoming annual Budget on February 26 and Railway budget on Thursday.