Rupee gains 17 paise/USD during the week

Mumbai, Apr 6: Rupee sharply surged up at 39.95/96, appreciating by 17 paise against US Dollar amidst bouts of volatility, at the Indian market in the week ended April 4, 2008. The Indian unit touched an intra-day high of 39.85 during the week and traded in a range band of 39.85 and 40.05 per Dollar, before closing the last session of the week below 40.00 level despite negative sentiments in the Indian equity market, dealers said.

Reported alternate bouts of buying and selling of Dollars in the inter-bank foreign exchange was witnessed throughout the week, however, the Indian rupee ended the week on firm note against the greenback, a senior dealer with a leading private bank said.

Dealers maintained that the Indian unit climbed to its highest close in five days on Friday, after inflation surged to a three-year high and triggered hopes of possibility that the Reserve Bank of India would let the currency appreciate to rein in prices, dealers said.

Weekly data showed that annual inflation, based on Wholesale Price Index (WPI), soared to 7.0 per cent on March 22, hit an over three year high and was far exceeding analysts' expectations of 6.62 per cent.

UNI