Rupee resumes positive at 44.04/05 per USD

Mumbai, Mar 20: The Rupee today resumed high at 44.04/05 against the US dollar compared to its previous close rate of 44.11/12 on firm advice from Asian markets, dealers said.

The Indian currency hovered near an 18-month high against the US dollar this morning session as buoyant Asian markets lifted sentiment, but investors were worried that the central bank would block the Rupee's path as it approached the 44 mark.

Later, the partially convertible Rupee fluctuated between 44.04 and 44.08 per dollar, rising from Friday's 44.11/12. The forex market was closed on Monday on account of Gudi Padwa.

The Reserve Bank of India (RBI) is suspected of selling the Rupee to cap its gains and protect export competitiveness. Data shows the central bank has purchased close to USD 8 billion in the three months to January, and market widely believe it has played an active role in capping the Rupee in February too.

Today, the Rupee gained support as most Asian currencies held firm against the dollar as rallying global equity markets reflected greater investor appetite for risk.

Foreign funds have poured in about USD 1.1 billion into Indian equities in 2007, which has helped power the Rupee's gains, dealers added.

UNI