Rupee strengthens against US dollar, oil slumps

July 9th, 2008 - 9:00 pm ICT by IANS  

Mumbai, July 9 (IANS) The rupee Wednesday strengthened to Rs.43.12/13 against the US dollar after a plunge in crude prices and rise in Indian equity markets, giving hope of capital inflows into the bourses. The rupee ended at 43.24/25 the previous day.

In the Asian markets, crude oil was traded around $138 a barrel, after touching a high of $148 in the previous week.

Forex dealers said the rupee drew support from foreign non-banking financial companies (NBFC).

Navin Raghuvanshi, associate vice-president, Treasury and Financial Institutions Group, Development Credit Bank, told IANS: “Apart from dip in crude oil prices and surge in stocks, many foreign NBFCs, which trade in India, sold their non-deliverable forwards (NDF) positions Wednesday, which weakened the dollar.”

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