STATESMAN NEWS SERVICE
Mumbai, 30 August
The partially convertible rupee today improved further to reach 65.70 for one United States dollar on a strong support from the Reserve Bank of India.
The central bank, according to dealers, sold the American currency through state-run banks when the domestic unit betrayed signs of cracking once again at 66.60/$.
Exporters and some other banks too sold dollars helping equities on Dalal Street to post fresh gains to close the week on a satisfactory note.
The rupee ended for the week at 65.70 per US dollar versus Thursday's 66.55/$, an increase of 85 paise.
On account of sustained infusion of dollar liquidity by the central bank the domestic currency recovered 4.7 per cent in last two sessions, dealers said. The unit had earlier lost 17 per cent since May, but now appears to be on a recovery path.
For the Indian currency and Indonesia's rupiah, August had been the worst-ever month as these units posted sharp falls among all currencies in emerging economies, analysts say. The rupee was down more than 10 per cent (or 17 percent since May) while rupiah was down 5.9 per cent.
Analysts say unlike RBI's intermittent intervention, the Indonesian central bank has been constantly propping up their currency. The only consolation for the month has been surge in information technology stocks since they are expected to net more revenue on the currency's fall.
Analysing promising prospects of top outsourcing firm Tata Consultancy Services, Credit Lyonnais Securities Asia and Morgan Stanley have predicted that the company has the potential of crossing $100 billion market cap in few years from its current $50 billion level.
Shares on the Dalal Street had a roller-coaster ride on the last day of the week. The trade resumed expecting a promising speech on the state of the economy by the Prime Minister Manmohan Singh in Parliament.
The S&P Bombay Stock Exchange Sensitive Index and CNX Nifty of the National Stock Exchange added substantial gains in the run-up to the PM's speech.
However, a dismay set in as the economist PM poked holes in the all-round criticism of the Congress-led UPA government instead of doing some introspection, said market analysts, explaining why the indices returned to negative zone within minutes of Mr Singh's statement.
The 30-share Sensex had slumped from 231.19 point gains and the Nifty from a high of 5,469.10 points into negative territory. It improved again as opinion poll on likely GDP numbers, which are to be announced later in the afternoon, looked “optimistic.”
On expectations that the latest GDP growth percentage would not fall under four per cent helped markets to regain confidence. The Sensex closed 1.19 per cent up gaining 218.68 points at 18,619.72 points.