Mumbai:
Yesterday, the rupee breached the 45-level mark touching
an over 44-months high.
The rupee, which has been on an upward movement for the
past 21 months, yesterday ended at 44.87 gaining 21 paise
in its value against the dollar from the previous close.
The
dollar lost value against the rupee for the third straight
session primarily because the Reserve Bank of India abstained
from absorbing heavy dollar supplies. Continued lack of
demand for the dollar from domestic companies also contributed
to the rupee's firmness, according to forex dealers.
In
the last three days, the rupee rose by 37 paise. The RBI
did not step in at the 45.00-level mark surprising market
players. The next psychological barrier, when the central
bank is expected to stem the rise of the rupee, is at
44.80.
Yesterday's
closing level is comparable to July 31, 2000 when the
rupee had closed at 44.89. It then dipped to 49.09 levels
in mid-June 2002 after which the rupee staged an 8.6 per
cent gain in its value against the dollar. It has appreciated
by 1.6 per cent since the start of this calendar year.
The
currency opened at 45.0825/0875, which was the intra-day
low
and ended at the day's high. Unusually high dollar supplies
by way of FII inflows into the IPOs and exporter receivables
flooded the market.
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