Rupee rallies mildly against US dollar
The Rupee strengthened against the US Dollar on exporter selling following weakness in the global forex markets.india Updated: Apr 19, 2006 12:48 IST
The Rupee on Wednesday strengthened against the US Dollar on exporter selling following weakness in the global forex markets on concern of rising crude oil prices.
In cautious trade at the Interbank Foreign Exchange (forex) market in Mumbai on Wednesday morning, the Rupee was quoted at 45.16/17 per dollar, slightly higher from Tuesday's close of 45.17/18 per dollar.
The Rupee opened distinctly firm at 45.12/13 per dollar.
The forex spot trade remained quiet and range-bound due to lack of market moving factors.
Exporters selling dollar and a weak trend in overseas markets gave the Rupee underlying support but soaring crude oil prices and a slow-down in FII inflows could weigh on its value, a forex dealer said.
World oil prices surged to record peak on Tuesday above 72 dollars a barrel in London and over 71 dollars in New York as the market fretted over possible military conflict between the US and Iran.
The price of New York light sweet crude was quoted at historic highs of 71.02 dollar a barrel in early Asian trade on Wednesday.
Although, Foreign Institutional Investors, (FIIs) injected a modest $56.9 million into equity market on Monday, FIIs pulled out a massive $215.90 million on April 13 on the back of $165.20 million outflows on April 12.
Turning to Cross Currency trade, the Euro was quoted at Rs 55.73/75, Pound Sterling at Rs 80.40/43 and Japanese Yen (100) at Rs 38.56/58.