>Rupee hits a nine-year high in the week
The Indian Rupee hit a nine-year high on Monday (July 23) bolstered by strong capital inflows into the Indian equities market and weak Dollar on concerns of US slowdown. The Indian Rupee tested 40.23 a Dollar - a level last attained in May 1998. However, strong intervention from the central bank to cap the Rupee rally pushed it back to settle at 40.2950/3050 a Dollar, still stronger than Friday`s close of 40.3200/3275.The Indian Rupee continued to hit a fresh a nine-year high on Tuesday powered by the robust capital inflows in the Indian equity market and heavy Dollar buying by the Indian exporters. Central bank stepping in with a large chunk, provided support to the Dollar. The Rupee finally ended at 40.2750/2850 a Dollar, off by 40.20 still stronger than Monday`s close of 40.2950/3050.The Indian Rupee stepped down from its nine-year highs on Wednesday as global investors offloaded positions to reduce risk appetite for some emerging market assets. The Rupee remained weak on worries of a strong intervention by the central bank, being in the favor of Indian exporters; to block the rally. India exporters have been affected adversely by the sharp appreciation of the currency. The Rupee closed at 40.3500/3575 a Dollar, weaker than Tuesday`s close of 40.275/285.The Indian Rupee remained steady on Thursday as gains extracted from strong foreign investment flows were outweighed by lightening positions in the local unit by traders when concerns over the fallout from the U.S. subprime market made them risk-averse about investment in risky local currency. The Rupee ended at 40.3400/3450 a Dollar, compared with Wedensday`s close of 40.3500/3575.The Indian Rupee extended its losses to its lowest in three weeks on Friday as heavy sell-offs in global equities due to fears of sub-prime mortgage loan losses made foreign investors offload their holdings in Indian market assets. India`s BSE Sensex witnessed a major fall of 541.74 points to settle at 15,234.57. Further aided by the month end demand for US currency from oil importers, the Rupee closed the week at 40.51/53 a Dollar, its lowest since July 3, weaker than Thursday`s close of 40.3400/3450.
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