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Rupee ends firm at 46.81/$

The rupee ended firmer against the dollar on Friday after heavy dollar sales by foreign banks.

Dollar forwards also ended lower on exporter sales of future receipts and market talk the central bank may cut the bank rate or the cash reserve ratio later in the day.

The rupee ended at 46.8000/8150 per dollar, sharply firmer than Thursday's close of 46.8500/75.

The benchmark Bombay share index ended almost flat, following Thursday's four per cent gain after a recovery from 27-month lows in recent sessions.

Foreign fund investments in Indian stocks and debt have however been positive and now total $2 billion.

The Reserve Bank of India announced its monetary policy for 2001/02 (April-March) on Thursday, leaving key rates unchanged but indicating a bias for softer rates and easier liquidity.

Analysts said the speculation that the bank rate or CRR will be cut emerged in afternoon deals.

The surprise rate cut in the United States on Wednesday added strength to the speculation.

The annualised six-month premium dipped to 4.79 per cent from Thursday's close of 4.87 per cent, before recovering in late deals to close at 4.84 per cent.

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