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The Indian rupee ended firmer for the second straight day on Tuesday, with sentiment bolstered by central bank support and a bounce of more than eight percent on the equity market after a historic drop a day earlier.
It shrugged off the central bank's annual policy statement, which forecast economic growth of up to seven percent for the year to March 2005 and kept rates unchanged at three-decade lows despite inflationary risks posed by firm oil prices and buoyant domestic demand - also mentioned by the bank.
The rupee ended at 45.4750/4850 per dollar, up from the previous close of 45.5150/5250.
The currency pulled away from an eight-month low of 46.01 per dollar on Monday after the central bank said it was ready to intervene in the currency market to curb excess volatility.

Copyright Reuters, 2004

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