Mumbai: The Indian rupee showed signs of recovery today, appreciating by about six paise as against US dollar demand petered out amid firm equity markets and easing global crude oil prices.

In dull trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 40.4250 / 4350 a dollar from its overnight close of 40.48 / 49 a dollar and later ruled steady around this level in late morning trade.

Forex dealers said there was no demand for dollar from oil refiners on the last day of month even as global crude oil prices fell sharply.

World oil prices today held steady in Asian trade ahead of an expected US Federal Reserve interest rate cut after a fall of 3.12 dollars a barrel in the New York Mercantile Exchange yesterday.

Asian equity markets too witnessed firm trend. Indian benchmark Sensex was trading in positive territory in morning trade, raising expectations of gradual increase in the capital inflows, the prime factor for the rupee s appreciation by 12 per cent during last year, they added.

The Reserve Bank's decision to hike the CRR by 0.50 per cent in two tranches, coming into effect from April 26 and May 10 and another raise of 25 basis points in its credit policy released yesterday is expected to have a desired impact on the rupee in the near future, traders said.
Source : PTI