Thursday, June 29 2006 11:34 Hrs (IST) - World Time -

Mumbai: The rupee today (June 29, 2006) pulled up a modest rally on dollar sales by exporters and banks ahead of the FOMC's meeting, expected to raise US interest rate by a quarter percentage point even as the outlook remains uncertain due to rising crude oil prices and a slowdown in FIIs inflows.

In cautious trade at the Interbank Foreign Exchange market here this morning, the rupee was quoted at Rs 46.3550/3650 per dollar, higher from yesterday's close of Rs 46.3750/3850.

The rupee, however, opened weak at Rs 46.38/40 per dollar reflecting a firm US currency against major global rivals, mainly the Euro.

Exporter dollar sales and unwinding of long dollar position of banks projected a slight rupee rally early today even as market sentiment remains bearish due to high oil prices and a steady pull-out by FIIs.

"Customary month-end dollar demand, however, could exert renewed pressure on the rupee later today," dealer said.

Meanwhile, marketmen were awaiting the outcome of the US Federal Open Market Committee's Meeting (FOMC), expected to raise interest rate.

World crude oil prices rose to USD 72.38 a barrel in early Asian trade today due to lingering supply concerns.

Foreign Institutional Investors (FIIs) sold shares worth US$ 24.50 million, June 27, taking the total outflows to over US$ 90 million since June 22.

In cross currency trade, the Euro was quoted at Rs 48.15/18, Pound Sterling at Rs 84.22/24 and a Japanese Yen (100) at Rs 39.76/78.