|
Rupee pierces 40 per dollar mark after nine years |
|
|
|
|
Written by sadiq
|
|
Saturday, 22 September 2007 |
|
After the Sensex, it was the turn of the rupee to rise to dizzy heights. Raising concern among exporters and IT companies, the rupee on Thursday pierced through the psychological level of 40 and closed at a new nine-year high of 39.88 against the dollar.
Though importers will benefit from the sharp appreciation of the rupee, it will bring down the earnings of exporters and IT companies, which get a major chunk of their revenue from the US market. "Rupee appreciation is a concern. We are going to look at it," PTI quoted Commerce Minister Kamal Nath as saying. The rupee appreciation was attributed to heavy capital inflows mainly induced by the interest rate cut by the US Federal Reserve. The rate cut brightened the prospects for high-yielding currencies like India, a forex dealer said, adding foreign investors would now prefer to invest in these high-yielding assets rather than low-yielding ones. |
|
Last Updated ( Sunday, 07 October 2007 )
|