Search the Internet           Tips

Rupee ends steady, import demand dominates

The Indian rupee ended Friday steady against the dollar in range-bound trade led by import demand.

Dealers said dollar supplies were sufficient to meet the day's demand which was mainly from a software firm, a fertiliser importer and some government foreign currency payments.

Volumes were moderate, with several dealers attending the Asia Pacific Forex Congress at New Delhi.

The rupee ended at 46.855/865 per dollar, off intra-day highs of around 46.84, compared with Thursday's close of 46.85/86.

Some state-run banks, which normally intervene in the market on behalf of the central bank, also made light dollar purchases to fund imports and paid (sell-buy swaps) in the forward market, dealers said.

They said there was no impact on the rupee from Reserve Bank of India (RBI) Governor Bimal Jalan's speech at the Asia Pacific Congress.

Jalan told the congress the central bank wanted to ensure stability and order in the currency markets.

He also said foreign exchange reserves, which stood at $37.077 billion on November 17, were adequate to meet the high oil import bill.

Jalan said interest rates had been softening lately and he hoped the trend will be maintained.

Back to top

(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report