Tuesday, June 27 2006 15:05 Hrs (IST) - World Time -

Mumbai: The rupee today (June 27, 2006) posted a moderate relief rally against the US currency on light exporter dollar sales amid a slightly retreating dollar overseas even as the outlook remained uncertain due to rising crude oil prices and a slowdown in FIIs inflows.

In cautious early trade at the Interbank Foreign Exchange market, the rupee opened on a firm note at Rs 46.34/37 per dollar and edged up further to Rs 46.33/34, higher from Monday's over 22 month closing low of Rs 46.39/40 per dollar.

A slightly weak dollar overseas fuelled a moderate pull-back rupee rally early today on the back of exporter dollar sales and unwinding of long dollar positions by banks, a forex dealer said.

"However, rising crude oil prices and fears of slowdown in FIIs inflows could exert renewed pressure on the rupee," he added.

World crude oil prices shot-up to US$ 72.04 a barrel in early Asian trade today due to renewed supply concerns.

Foreign Institutional Investors (FIIs) sold shares worth US$ 44.60 million in the Equity market on June 22 and another US$ 14.90 million on June 23.

The rupee tumbled by whopping 27 paise yesterday to 46.39/40 per dollar, pulled down by hectic all-round dollar demand amid thin supplies.

Despite today's early rupee rally, the currency could come under renewed pressure due to customary month-end dollar demand.

Turning to cross currency trade, the Euro was quoted at Rs 58.46/48, Pound Sterling at Rs 84.64/66 and a Japanese Yen (100) at Rs 39.96/98.