Rupee likely to appreciate further

Mumbai, Sep 1: Taking positive cues from strong sensex margins, Indian rupee recovered smartly this week by nearly 15 paise to settle at 40.87/88 per US dollar Friday last.

Reserve Bank, which was cautious in steadying the unit's volatile course that drew an unprecedented correlation with Sensex movements, had its presence in most sessions during the period, said senior Forex dealers.

Rupee, which kicked off the trade at 40.93/95 per dollar on August 27, fell in subsequent sessions even as it stood almost range-bound during the period at 41.00-41.16/17 levels before settling on Friday at 40.87/88 per dollar, registering a gain of 29 paise from the last close.

Sensex had gained by over 475.22 points last week to settle high at 15318.60 on Friday as against its opening mark of 14843.38 on Monday.

However, experts say the visible impact of the global credit crunch on investor circles and the resulting slow-down in capital inflows, is a decisive factor on Rupee's forward course.

''Given the fact that Rupee is closely following the developments in principal bourses, the unit is likely to appreciate further in the week ahead and may hover around 40.70-75 levels,'' opined Corporation Bank chief forex dealer Sudarshan Bhatt while speaking to UNI