Friday, July 7 2006 11:18 Hrs (IST) - World Time -

Mumbai: The Rupee today (July 7, 2006) projected a moderate rally on the back of a slightly weak dollar overseas amid steady foreign fund inflows with sentiments taking a turn for the better due to a fresh rally at the stock market.

In cautious early trade at the Interbank Foreign Exchange (Forex) market, the Rupee opened at 46.11/13 per dollar and was later quoted at 46.11/12 per dollar, sharply higher from Thursday's close of 46.15/16 per dollar.

"A retreating dollar overseas mildly easing global oil prices and steady FII inflows fuelled a relief rally early today with the outlook positive due to a smart turn around at the stock market," a forex dealer said.

"Meanwhile, marketmen were awaiting for crucial inflation data to be released later today for further clues to Rupee direction," he added.

Crude oil prices, eased below 75 dollar a barrel and was quoted at US$ 74.80 in early Asian trade today following anincreased in gassoline stock in the US weekly inventories.

Foreign Institutional Investors (FIIs) pumped in a whopping US$ 122.40 million into equity market and US$ 27.90 million in debt market on July 5. FII inflows amounted to US$ 47.30 on July 4 and US$ 56.10 million on July 3.

The Rupee also got support after the Bank of England kept key interest rates unchanged at 4.50 per cent and the European Central Bank kept rates untouched 3.25 per cent.

The BSE Sensex today shot up by over 114 points to 10883 61 with in 25 minutes of resumption of trade.

Turning to Cross Currency trade, the Euro was quoted at Rs 58.91/93, Pound Sterling at Rs 84.74/76 and Japenese Yen (100) at Rs 40.01/03.