Rupee reaches 41.64/65 against USD

Mumbai, Apr 17: The Indian Rupee today improved itself to reach at a fresh high of 41.64/65 against the US dollar as banks and companies sold dollars to generate rupees to tide over a cash squeeze and as capital inflows remained robust.

At 0945 hrs the partially convertible Rupee was at 41.64/65 per dollar, its strongest since May 1998 and up 0.5 per cent against the previous close of 41.93.

The Rupee has gained 13 percent from a three-year low of 47.04 in July, including more than 6 per cent in 2007 to be Asia's strongest currency against the dollar this year.

The first stage of an increase in reserve requirements for banks took effect on Saturday, draining an estimated Rs 7,750 crore from the system. The second leg takes effect on April 28.

Domestic deposits by overseas Indians have increased by USD 4 billion in 2006-07 while foreign borrowings by companies rose USD 14 billion, dealers said.

UNI