Re Gains To 46.85, Forwards Flat

Mumbai, May 21: | Updated: May 22 2003, 05:30am hrs
The rupee continued its gaining streak on Wednesday and closed at 46.85/87 per dollar in volatile trades. The forward dollar premia, however, rose in late-deals after the initial fall.

The rupee gained five paise from the Tuesdays close of 47.90/91 per dollar. With this, it has gained a whopping 25 paise in three straight days.

Locals Permitted To Obtain ICCs

Mumbai, May 21: As a step towards further liberalisation, the Reserve Bank of India (RBI) has permitted resident individuals maintaining a foreign currency account to obtain international credit cards (ICCs). This is in line with the extant foreign exchange regulations. Individuals who have a foreign currency account either with an authorised dealer in India or with a bank abroad, can obtain ICCs by overseas banks and other reputed agencies.

The forex market was quite volatile amid thin trades as 32 banks all public sector and a few old private sector banks participated in the industrial strike. The strike was called by the Trade Union Joint Action Committee (TUJAC) to protest against the new economic policies of the NDA government at the Centre.

The rupee opened stronger at 46.88/89 from the previous close of and rallied to 46.7650/77 level on dollar inflows. However, with the exporters buying dollars to pay in the forward market following a big-ticket export cancellation, the rupee moved down to 46.80 level. A few co-operative banks were also seen buying dollars at lower level. The repeated bout of dollar buying in a thinly traded market caused the volatility, dealars said. Though public sector banks were mostly off the market, some banks were seen buying dollars at 46.80 level. But dollar buying by corporates and exporters pushed the rupee to 46.85/87 level.