Rupee ends the first week firm, expected to hit new high

Mumbai, Jan 5: The Rupee ended the first week of the new year on stronger note against the US Dollar at 39.34/35, gaining six paise on Indian equity market, and hitting fresh life-time high in the week ended January 4.

The partially convertible Indian currency ended around 39.41/42 per dollar in four out of five trading sessions on suspected intervention by Reserve Bank of India (RBI), despite good inflows in Indian equity market. However, Rupee strengthened against greenback in the last trading session of the week on sustained selling interest of foreign banks, dealers said. Dealers expect Rupee's apreciation in the next week due to geared expectation of good inflows in the local equity market.

The local unit showed a tendency to move towards an all-time high of 39.16 per dollar on positive sentiments in the market, dealers asserted.

Rupee traded in a wide range band of 39.29 and 39.47 against US unit in the week, tracking the movements in the Indian equity market. ''There is a strong possibility that the local unit would pass over the all-time high level, if the present trend continues in the future sessions,'' a senior dealer with a leading private bank said and added that though RBI's suspected intervention would support the Rupee, strong cues in the Indian market would further boost the local unit.

UNI