Rupee was stronger in afternoon trade on Friday, on hopes the RBI
would soon start providing foreign exchange to oil firms, eroding
dollar demand. At 3.10 pm, the partially convertible rupee was at
42.755/765 per dollar, stronger than Thursday's close of 42.90/91.
Sensex is down 1.4 per cent after rising in early deals, as high
inflation, slowing growth and rising foreign fund outflows kept
investors jittery.
Foreign funds have pulled out $4.5 billion from Indian shares this
year, pulling the market down more than a fifth. In 2007, the funds
had bought a record $17.4 billion and helped stocks rise 47 percent
and the rupee gain more than 12 per cent.
Indian inflation rose further above 8 percent in late May, data showed
on Friday, and with higher fuel prices seen sending it to a 13-year
peak early next month, analysts expect central bank action soon to
ease price pressures.
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