Rupee ends four paise up against the dollar

Tuesday, June 23, 2009 |

MUMBAI: The rupee bounced back from its early lows and ended four paise dearer at 48.56/57 against the US currency following a dramatic recovery

in local stocks, and the dollar weakened against a basket of currencies overseas in late afternoon trade.

Touching a five-week low of 48.94/95 against the American currency in early trade, the domestic currency later traded in sync with the equity market, rebounding to 48.50 level during afternoon trade. It resumed weak at 48.85/86 a dollar against its previous close of 48.60/61 a dollar.

The Interbank Foreign Exchange (forex) market witnessed brisk activity amid fears of more capital outflows after foreign institutional investors pulled out more than $353 million last week.

According to provisional figures, FIIs also were net sellers in equity on June 22.

Forex dealers said the rupee drew support as the dollar turned weak against major world currencies during the day and local stocks staged a remarkable recovery from its early lows.

Touching a trading low of 14,016.95, the BSE benchmark Sensex today closed steady at 14,324.01.

Asian indices, however, were down by about 2% to 3% at close.

Global oil prices fell towards $67 a barrel in Asian trade.

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