Rupee ends at new 9-year हाई, ग्रोविंग स्त्रोंगेर ऎंड stronger

Spurred by strong foreign capital inflows in a booming economy, the rupee today closed at 40.4975 per dollar against yesterday`s close of 40.51/52
The rupee on Tuesday closed at a new nine-year peak even as Commerce Minister Kamal Nath expressed concern about the partially-convertible currency's sharp appreciation against the dollar this year.
Spurred by strong foreign capital inflows in a booming economy, the rupee today closed at 40.4975 per dollar against yesterday's close of 40.51/52. It opened at 40.48/50 and hit a high of 40.46/47 in morning trades before ceding some ground.
The Indian currency crossed 40.50 yesterday and reached as high as 40.28 on an intra-day basis. But, the central bank's intervention through public sector banks brought it down from the highest level since May 1998.
The Reserve Bank of India (RBI) has allowed the rupee to rise by over 9% this year to fight inflation, but going forward the central bank may slow the pace to protect exporters. It is the best performer currency among 16 most-active currencies in Asia.
The Government is concerned about the rupee's appreciation and is in talks with the central bank regarding the same, Commerce Minister Kamal Nath said today in Mumbai. "It is a matter of concern not only to our exporters but also to our manufacturers as there is a possibility of cheaper imports replacing manufactured products," he said.
According to official data Foreign Institutional Investors (FIIs) have pumped in about US$4bn into local equities this year after investing nearly US$8bn in 2006. Plus, a lot of overseas money is waiting in the wings for the blockbuster IPOs of real estate major DLF and banking giant ICICI Bank.
JPMorgan Chase expects capital flows to exceed US$5bn in the next eight weeks as companies including DLF and ICICI Bank sell shares.
Foreign Direct Investment (FDI) equity inflows in the fiscal year 2007-08 will be almost double the amount received last year at US$30bn, Nath said today. At US$15.7bn, FDI inflows last year were much higher than FII inflows.
The Indian economy, fourth-largest in Asia, is estimated to have grown by 9.2% in the fiscal year ended March 2007, the fastest pace in almost two decades, Commerce Minister Nath said today.
The rupee is headed for a third straight month of gains, rising 1.8% in May, following the 5.3% and 1.8% pace in the previous in two months, as the RBI is focusing on fighting inflation that accelerated to the fastest pace in two years in January.
RBI Governor YV Reddy in a speech in Tokyo yesterday said that the central bank expected inflation to moderate between 4% and 4.5% to maintain 8.5-9% GDP growth. Finance Minister P. Chidambaram today echoed the same view.
Inflation slowed to 5.27% in the week ended May 12, an eight-month low, a government report showed last वीक

the INR nine years high against USD

The rupee is creating history, so is India. India had been in limelight in the recent years because of the multi million dollar mergers and takeovers. the peoople in India are crazy about the Stock Markets, but don know that the FOREX market is 100 times biger than the equities market. u wont beleive that the turnover of the forex market is more than 1.5 trillion dollars in a day..

The Indian Rupee is creating an history against the US Dollar. The rupee is trading at a nine- year high at 40.89(on 18-5-2007). The rupee is expected to further appreciate due to more and more dollar pumping in the country.

An important factor is that the dollar is comming in all the sectors and not only the equity market. The RBI not interventing is also an reason for the appreciation in rupee. But, in the end it is the impoters and expoters who are affected by such volatilen forex market and now it has been compulsory for them to hedge.

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