June 21, 2002	Friday	Rabi-us-Sani 9, 1423

MUMBAI, June 20: The rupee ended steady, coming off highs on state-run banks’ dollar purchases, suspected to be on behalf of the central bank, halting its rise this week against a wobbly dollar overseas.

The rupee ended at 48.9125/9200 per dollar, barely changed from the previous close of 48.9100/9175, which was a two-month high. At Thursday’s close, the rupee has gained nearly 10 paise (0.10 rupees) in the past four trading sessions.

Had it not been for dollar buying by state banks at 48.89 levels, the rupee could have touched 48.85 as inflows are quite strong, said a dealer in a private sector bank.

Traders said the purchases by state-run banks reinforced the view that the central bank wanted to halt sharp gains by the rupee and maintain India’s export competitiveness.

Some traders had gone short on the dollar in the past few sessions on the view that the local currency would maintain an upward bias, tracking regional and other major currencies against the dollar.

The rupee’s rising streak had also led many exporters to increase dollar sales.

The dollar remained weak against other currencies on Thursday, clouded by losses on Wall street, fresh Middle-East tensions and fears of possible attacks on the United States. —Reuters