The Indian rupee gained past a psychologically key 45-per-dollar mark on Friday as the dollar fell overseas after the US Federal Reserve said it could pause in its rate tightening campaign.
"It was the dollar's drop which helped the rupee gain past the 45 per dollar mark," said a trader at a foreign bank.
"Month-end demand for dollars from oil companies also receded and these factors were helping the rupee. But for suspected central bank intervention, the rupee would have risen past 44.90."
The partially convertible rupee, which analysts say is overvalued by a little over five percent on a trade-weighted basis, ended at 44.9625/9700, 0.13 percent higher than Thursday's close of 45.02/03. It has gained 0.4 percent this week.
The dollar held near seven-month lows against the euro after Fed chief Ben Bernanke told Congress the economy was poised to slow, and said the Fed's policy panel may opt to pause in raising rates even if inflation risks grew.
Data from India's central bank released on Friday showed its foreign exchange reserves rose to a record $157.26 billion on April 21 from $155.196 billion a week earlier.
Comments
Comments are closed.