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Forex News
Feb 28 2008 9:35AM
Rupee up on weak dlr;mkt wary of cbank intervention

MUMBAI, Feb 28 (Reuters) - The rupee climbed on Thursday with the prospect of further U.S. rate cuts weighing on the dollar, but dealers remained cautious about central bank intervention against the local unit.

* At 9:15 a.m., the rupee <INR=IN> was at 39.747/757, inching up from the previous close of 39.78/79. It fell to a five-month low of 40.25 last week.

* The dollar hovered near record lows versus the euro as a sharp drop in durable goods orders and home sales fueled recession concerns, while Federal Reserve Chairman Ben Bernanke signalled a readiness to cut interest rates again. See [USD/].

* Dealers expected the rupee to be capped by demand for dollars from oil companies, as they typically step up their purchases of the U.S. currency at month-end to make overseas payments. (Reporting by C.J. Kurrien, editing by Prem Udayabhanu) ((Reuters Messaging: [email protected], 91-22-6636 9037))

Keywords: MARKETS INDIA RUPEE/

  Source:   

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