Rupee comes off three month low
Mumbai: The rupee recovered from a three-month low on Friday, drawing support from a booming stock market and as the central bank stayed away from absorbing robust foreign equity inflows. But volumes in the $16-billion-a-day market were on the low side as traders from the State Bank of India (SBI) stayed away from work demanding an increase in their pension.

Government-run SBI, which has more than 200,000 staff at some 9,000 branches across the country, is the biggest player in India's foreign exchange and bond markets. The nationwide strike began on Monday.

The rupee closed today at 44.68 against the dollar at 5 p.m. in Mumbai on scattered buying by oil importers in thin market. Its previous day's close was 44.70.

Call rates: The inter bank rates opened on Friday at 5.50-5.70 per cent against its previous day's same close. There was routine demand for funds from banks to cover their daily reserve requirements.
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Chidambaram sees no rupee convertibility before 2009
Singapore: Finance minister P. Chidambaram has ruled out full rupee convertibility before 2009. In an interview with Singapore's Straits Times published on Friday, the minister said, "I don't think in any event we will be ready until we can wipe out the revenue deficit and bring down the fiscal deficit to three percent. Which means, not earlier than 2009."

The Indian rupee is only partially convertible and RBI, the country's central bank, has in the past set out benchmarks for full capital account convertibility. A six-person central bank committee began looking into a suggestion, made by India's prime minister Manmohan Singh last month, to consider full convertibility for the rupee and intends to produce a road map by July 31 this year.

Chidambaram also said in the interview that there was no need to raise interest rates. The RBI surprised markets in January by raising a key interest rate by a quarter point to 5.5 percent to keep a lid on inflation, as well as to avoid excess growth in credit, which has been surging.
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RBI bars further foreign buying in ICICI Bank shares
Mumbai: India's central bank has barred further purchases of ICICI Bank shares by overseas investors since their holding has reached the permitted 74 percent limit.
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