Strike hits early trade in forex market

Mumbai: Early trade was adversely affected at the Interbank Foreign Exchange market here today due to the nation-wide one day industrial strike after the bulk of bank employees joined a slew of unions to protest the Centre’s privatisation policy. In thin dealing at the Forex spot market, the rupee was quoted at Rs 44.0250/0350 per dollar in late morning deals, higher from Wednesday’s close of Rs 44.0350/0450 per dollar following a strong opening slot of Rs 44.0150/0250. In subdued business, mainly confined to a few foreign and private banks, the rupee rallied mildly on the back of steady FII inflows and receding dollar demand, a forex dealer said.

However, a fresh rise in crude oil prices could weigh on rupee value, he added.

World crude oil prices rose to $ 66.44 a barrel in early Asian trade today due to signs that US supplies would plunge.

Having absorbed most of the month-end dollar demand in the last three session, the rupee today rallied on sustained FII inflows into the equity market, another dealer said.

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Written by admin on September 29th, 2005 with comments disabled.
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