MUMBAI, MARCH 9:
The rupee was up by 13 paise at 44.95 against the US dollar in the early trade today on selling of dollars by banks amid a firming trend in the equity market, despite gains registered by the American currency overseas.
The domestic unit resumed slightly higher at 45.05/06 per dollar against the previous closing level of 45.08/09 and firmed up further to 44.95. At 10.30 a.m., the rupee was quoting at 45.02/03.
The domestic currency moved in a range between 44.95 and 45.06 per dollar in the morning deals.
Fresh selling of dollars by banks on hopes of capital inflows from foreign funds in view of a firming trend in the equity market supported the rupee’s rise against the greenback, a forex dealer said.
However, the dollar rose against the euro in the New York market on Tuesday over fears that some euro zone states won’t be able to withstand higher interest rates, though further gains will likely require the Federal Reserve to adopt a tighter policy.
In the Tokyo market, the euro fell for the third straight session against the dollar, with pressure likely to mount as investors remain unconvinced that Friday’s European summit would quell concerns about the region’s fiscal problems.
