Rupee gains on captial inflow from IPO of PGCIL
Weekly wrap up: Rupee gains on captial inflow from IPO of PGCIL Indian Rupee gained support from the IPO of Power Grid Corporation of India (PGCIL) -that attracted overseas investment, making the Indian bourses firm on September 10. The anticipation of the US Federal Reserve cut on interest rate strengthed, after the weak data on non- farm pay roll. The data reflected economic slowdown. Indian Rupee ended at 40.6550/6650 a dollar, as against Friday`s close of 40.6875/6975 . The local currency continued to move northward on September 11, on account of overseas investment in IPO of PGCIL, which expects to raise capital worth Rs 29.84 billion. On the other hand, the domestic market witnessed Dollar buying from banks on behalf of RBI to retain Rupee appreciating further more, causing a dent to the earnings of the exporters. Indian Rupee remained steady at 40.56/57 a Dollar, as against the previous close of 40.6550/6650. Indian Rupee continued to gain on September 12, with the fast approaching Federal Reserve policy meeting on Sep. 18, 2007. Rupee gained momentum on huge inflow of capital from the IPO of Power Grid Corp of India and a firm belief that there could be cut in interest rates. However, Indian Rupee settled at 40.4475/4550 a Dollar, up from the previous close of 40.56/57. The local unit reversed its movement of September 13, as the central bank intervened in the forex market to help exporters from the Rupee appreciating against greenback. The sentiments of the investors also got affected on concerns of high crude oil prices trading at nearly USD 80 barrel and the import bill rising on high local demand, that widens the trade deficit. Indian Rupee settled at 40.45/46 a Dollar, marginally lower than Wednesday`s close of 40.4475/4550. Indian Rupee remained flat on September 14 on huge capital inflows into the local market that equalized with the Dollar demand from oil importing companies. High crude oi l prices was a cause of worry in the midst of high demand in the local market. On the other hand, the outlook of the investors in the Indian assets was favorable, which led huge inflow of capital, that led the Rupee to be flat. Indian Rupee remained steady at 40.455/46 a Dollar, as against the previous close of 40.45/46.
