Business | Investment
Indian rupee trims gains after high
The Indian rupee trimmed gains yesterday after hitting a one-month high, as heavy losses in the local stock market raised concerns of more capital outflows, while dollars sales by exporters gave some support.
- Reuters
- Published: 23:32 November 5, 2008
Mumbai: The Indian rupee trimmed gains yesterday after hitting a one-month high, as heavy losses in the local stock market raised concerns of more capital outflows, while dollars sales by exporters gave some support.
The partially convertible rupee closed at 47.46/50 per dollar, 0.5 per cent stronger than 47.69/70 at close on Tuesday.
In early trade, the local unit touched 46.70, its strongest since October 2, as it extended a recovery from a record low of 50.29 on October 27. The rupee is still down 17 per cent in 2008.
"The rupee initially rallied helped by a spillover of yesterday's dollar selling. Later, due to demand from foreign institutional investors and import-covering, the dollar-rupee went up," the chief dealer with a state-run bank said.
Dealers said dollar inflows from a large pharmaceutical company, which began on Tuesday, continued in the early session, helping the rupee strengthen past the 47 per dollar mark. They said some exporters sold dollars in afternoon trade, preventing the rupee from giving up all its gains.
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