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Rupee up sharply at 46.44/$: Reuters

The US dollar turned further sharply cheaper against the rupee at Rs 43.4350/4450 per dollar, while the pound sterling was mildly up at Rs 68.36/39 per pound at the close of the interbank foreign exchange on Wednesday.

Intra-day report

The rupee opened firm on Wednesday, after closing at an 11-week high on Tuesday, and gained in early trade on a surge of dollar supplies from banks acting on behalf of foreign funds, dealers said.

Purchases by state-run banks, which often mop up dollar supplies to stop the rupee from appreciating sharply, were yet to emerge, they said. These banks normally act on behalf of the central bank.

The rupee was quoted at 46.44/45 at 11:50 a.m., after it opened at 46.47/47 and has gained over 0.5 per cent in the past seven trading sessions. The Indian currency ended Tuesday at 46.485/495.

Dealers said foreign portfolio investment has been strong this month and the dollar inflows are expected to keep the rupee firm.

Data from the stock market regulator showed that foreign funds have a net $432.5 million in Indian equity and debt markets so far this month after being net sellers in December.

Foreign direct investments, which have been sluggish in calendar 2000, has also picked up in January, dealers said.

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