Rupee trades near 8yrs high at 42.89 per USD

By Staff
|
Google Oneindia News

Mumbai, Apr 4: The rupee is trading higher at 42.89/90 against a US dollar in intra-day trade today, which is nearer to its 8 years high of 42.85/86, as against the previous close of 43.06/07, on dollar selling by banks to generate cash due to scarce liquidity.

The rupee opened higher at 43.02/03 against the USD. Later, it surged to its eight-years high of 42.85/86. The rupee is at present trading at 42.89/90 per US.

In a surprise move, after trading hours last Friday, the Reserve Bank of India (RBI) had lifted their short-term lending rate by 25 basis points to 7.75 per cent, its highest in nearly 4-' years, after trading ended on March 30. The central bank also raised the cash reserve ratio (CRR), the proportion of cash banks have to hold with the central bank on deposit, by half a percentage point to 6.5 per cent in two stages, to siphon out around Rs 15,500 crore from the banking system.

The rupee had ended at 43.06/08 yesterday. The rupee had last breached the key psychological 43 mark in June 1999, dealers said.

UNI

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