Tuesday, December 2, 2008

Rupee strengthens as stocks pare losses

The rupee strengthened after hitting a record low on Tuesday as the domestic stock market pared some losses on bargain buying and as positive U.S. stock futures eased selling pressure.

* At 3:48 p.m. the partially convertible rupee was at 50.17/19 per dollar, off a record low of 50.65, and stronger than Monday's close of 50.30/32.

* Dealers said the central bank had likely sold dollars around 50.60 levels through state-run banks to halt a further slide in the rupee.

* A recovery in the local share market helped calm some nerves about accelerated foreign fund outflows, dealers said. The BSE Sensex closed down 1.14 percent after having shed more than 4.2 percent early.

* Foreign funds have so far sold a net $13.7 billion worth of Indian shares in 2008, after buying a record $17.4 billion last year.

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