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Rupee spurts to a 53-month peak
March 31, 2004 12:22 IST
Last Updated: March 31, 2004 14:50 IST
The rupee pierced through the 44 per dollar psychological barrier and spurted to a 53-month peak of Rs 43.41/43 per dollar early on Wednesday, driven up sharply by sustained heavy trade and foreign capital investment inflows ahead of the fiscal year-end.
Surging by 18 paise from last Monday's 46-month closing highs of Rs 44.05/07 per dollar, the rupee shows no let up owing to heavy foreign fund inflows amidst negligible dollar demand, notwithstanding the customary month-end pressures, dealers said.
The rupee opened firm at Rs 44.03/05 per dollar.
Heavy dollar inflows due to IPO's and ECB's have deluged the local market amidst a lingering weak dollar overseas.
The rupee has appreciated by 163 paise since March 24 and has surged by nearly 3.5 per cent in the current calendar year so far, following a sharp 5.32 per cent rise in 2003.
Last Friday FIIs inflows were a staggering $272 million, which is a record in a single day.
"In a thin market the rupee gains has been exaggerated in the absence of central bank intervention to contain the rupee rise," a forex dealer said.
Persistent heavy foreign fund inflows from a spate of IPO's, mainly divestment in large energy companies have flooded the local market ahead of the fiscal year-end, with hardly any demand from corporates and importers.
Meanwhile, in cross currency trades, the Euro was quoted at Rs 53.90/93, Pound Sterling at Rs 80.73/75 and Japanese Yen at 42.10/12.