Rupee at a fresh 9 1/2 year high

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Mumbai, Oct 5: Enormous inflows ushered in a fresh nine year- peak to the rallying Rupee today, intensfying the exporter agonies and making the currency watch a more challenging affair for the banking regulator.

The Rupee closed at 39.49/50 per dollar, ahead of yesterday's close after rising up to 39.44 per dollar in intra-day. Rupee had recahed this level in April, 1998, prior to this, said sources.

According to Forex traders, total inflows were in the range of USD 5-6 Million today while the inflows in last two weeks alone have been estimated to be around USD 12 billion.

''The continuing inflows indicate further appreciation of the currency in the weeks ahead. If things go in the current levels, Rupee may reach up to 38.55 against US dollar by the end of this year.'', said a senior dealer with a bank.

Meanwhile, the huge quantity of inflows continue to enter the market and have virtually left the Reserve bank helpless in blocking the rupee-race.

According to dealers, Reserve bank's intervention was less on Friday as compared to the previous consecutive days while foreign banks were quoted buying out dollars.

At its Liquidity Adjustment Facility (LAF) window, RBI today mopped up Rs 54,370 crores accepting all the 37 bids received.

Rupee started quiet at 39.49 per US dollar and went down to 39.54 per US dollar prior to stage a smart comeback.

In the forwards, Six month premium ended at 1.05(1.11) per cent while annualised premium ended at 1.05(1.16) per cent.

Agianst Euro, Rupee ended at 55.79 per dollar, against Pound Streling at 80.51/52 per dolalr while against Japanese Yen it ended at 33.89/90 per dollar.


UNI

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