Rupee at 8-month high - breaches 44 mark
Rupees run against US Dollar continues - it closed at Rs. 43.63 on December 6' 2004. This is the highest mark after previous high closing of Rs. 43.64 achieved on April 12' 2004.
Continued foreign investment inflows and higher export-related dollar sales coupled with weakening of the dollar against other international currency majors helped this surge of the rupee. According to one source - FIIs invested nearly $50 million to $1 billion across Indian markets on Monday's trade alone .
Other factors working behind this surge are non intervention by Reserve Bank of India and falling International crude price. It is expected that this surge will continue for next few days with next support level seen at 43.30.
Forward premia ended slightly softer as the six-month annualised premium finished at 1.53 per cent (1.58 per cent) while the twelve-month premium ended at 1.07 per cent (1.15 per cent).
December 6' 2004
