March 14, 2003	Friday	Muharram 10, 1424

MUMBAI, March 13: The Indian rupee ended flat on Thursday despite continued exporter inflows as domestic oil companies, which don’t hedge in the forward market in a big way, had to step up dollar purchases due to rising global oil prices.

The rupee closed at 47.6550/6625 per dollar, coming off a low of 47.67 in late trade. It has ended the week a tad weaker, with importers gradually increasing dollar purchases as fears of a war in the Middle East intensified.

The markets are closed on Friday for the Muharram holiday.

“Oil companies’ purchases are probably higher than usual because of the rise in oil prices,” said a trader at a state-run bank. Oil firms normally buy dollars from the spot market when import payments come up.

Global prices of oil, India’s largest import item, have been firm on fears that the United States could soon strike Iraq, the world’s eighth largest oil exporter.

“Firm oil prices are a concern, but till hostilities break out in the Middle East, the rupee will be marginally higher to steady,” said Dhananjay Sinha, assistant vice president at JM Morgan Stanley, adding that the underlying outlook for the local unit remained strong because of robust inflows.—Reuters