Rupee rises, ends at 44.36 per Dollar
Rupee gained another two paise from Tuesday's close of Rs 44.38/39, but finished sharply lower from highs of Rs 44.29/30.india Updated: Mar 01, 2006 22:17 IST
The Rupee on Wednesday ended higher at Rs 44.36/37 per Dollar on the back of steady FII inflows amid a retreating dollar overseas as Dollar demand from oil corporates and importers limited gains to the minimum due to a fresh surge in crude oil prices.
In choppy two-way trade at the Interbank foreign exchange (Forex) market, the Rupee gained another two paise from Tuesday's close of Rs 44.38/39, but finished sharply lower from highs of Rs 44.29/30 struck in early deals following the dollar's overnight fall against the Euro, dealers said.
Rupee rallied smartly by 10-1/2 paise on Tuesday.
Persistent FII inflows into the booming stock markets amid a retreating Dollar overseas drove the Rupee to peaks of 44.29/30 in early trade but renewed Dollar demand from oil corporates following a fresh surge in crude prices wiped out a major part of the Rupee gains, dealers said.
Foreign Institutional Investors (FIIs) injected $86.40 million into equity markets on Monday after pumping in a massive $651.30 million last week.
The BSE Sensex hit new dizzy heights, crossed 10,500 level to a fresh peak of 10,573,29 before closing at an all-time high of 10,565.47.
World crude oil prices on Wednesday rose to $61.87 a barrel on lingering concerns over the situation in Middle East and Nigeria in spite of a build up in US crude stocks.
Some dealers said that the central bank's surrogate intervention through state-run banks curbed Rupee gains in order to give exporters a competitive edge.