Rupee ends higher against dollar
The rupee's gains from heavy capital inflow coupled with dollar selling by oil companies after recent fall in crude oil prices.india Updated: Sep 14, 2006 20:35 IST
The rupee on Thursday ended smartly higher against the US currency at Rs 46.13/14 per dollar due to heavy capital inflow coupled with dollar selling by oil companies after recent fall in crude oil prices.
In active trading at the Interbank Foreign Exchange (FOREX) market here, the Indian currency opened sharply higher at Rs 46.10/11 per dollar as against yesterday's close of Rs 46.18/19 and after rising to an intra-day high of Rs 46.0900, ended at Rs 46.13/14, smartly higher than the previous close.
Around USD 4 billion foreign inflow had reportedly came into the stock market during the year which also boosted the rupee sentiment, forex dealers said.
Although crude oil prices showed a moderate recovery today, oil companies which had bought dollar when crude prices were steeply higher, started offloading some of their holdings after the recent crash in oil prices resulting in the firming up of rupee, they added.
Foreign as well as domestic funds buying was so strong that stock prices rose smartly and the BSE sensitive index managed to cross the 12,000 mark during after nearly 4 months during mid-day trading.
Meanwhile, oil prices were higher, picking up after the market consolidated near multi-month lows in recent sessions and New York's main contract, light sweet crude for October delivery, was up by 55 cents at $64.52 per barrel, while Brent North Sea crude for October rose by 51 cents to $63.50 a barrel.