The currency opens at 48.45 per dollar. It touched high of 48.31 against dollar and low of 48.97 per dollar. It closed at 48.56 per dollar.
Rupee rose 2.1% to 48.56 a dollar from 49.60 on Dec.5, during the week.
Rupee advances for a second week as FIIs resume purchase of domestic shares.
Rupee opened weaker on capital outflows by FII’s amid dollar demand from importers. The currency opened at 48.45 per dollar. It touched high of 48.31 against dollar and low of 48.97 per dollar. It closed at 48.56 per dollar.
FIIs are net sellers of US$13.3bn so far in 2008. They had bought a record US$17.4bn last year. This has been the major factor of rupee weakness in this year which has corrected around 20% this year.
The annual inflation rate in the week ended Nov. 29 was 8%, the lowest since April 12, the government said.
The government may announce next week more fiscal measures to boost the economy, Trade Minister Kamal Nath was quoted as saying. That will follow the economic stimulus package announced on Dec. 7, the minister added.
India’s Index of Industrial output data fell to -0.4% in October from a year earlier.
Foreign-exchange reserves has declined US$1.8bn to US$245.9bn in the week ended Dec.5, according to RBI data. Foreign-currency assets fell US$1.82bn to US$237.1bn, the report stated.
Gold reserves were at US$7.86bn and special drawing rights with the International Monetary Fund were unchanged at US$3mn. The reserves with the IMF slipped US$9mn to US$845mn.
The change in foreign-currency assets is partly because of fluctuations in the value of the dollar against the euro, yen and other currencies during the period, the central bank said.
Foreign-exchange reserves have declined by US$27.7bn in the past year, the bank said. The reserves comprise overseas currencies, gold and special drawing rights with the International Monetary Fund.
One-month offshore non-deliverable forward contracts PNDF were quoting at 49.10/49.25, weaker than the onshore spot rate after having been stronger or steady in the previous session, indicating a change in outlook.
Source : Indiainfoline.com