Rupee shows signs of recovery

Having crashed to a 20 month low last week, the Indian National Rupee is showing signs of recovery as it rose by 18 paise to Rs 49.83 per US Dollar in early trade on the Interbank Foreign Exchange on Monday as the American currency weakened against the Euro and other currencies.

Forex dealers said a strong opening in the stock market and dollar losses against the Euro and other currencies overseas kept the rupee sentiment firm.

They added, however, that month-end dollar demand from importers restricted the gains.

The rupee had lost 21 paise to close at Rs 50.01/02 against the US dollar on Friday

Meanwhile, the Bombay Stock Exchange 30-share index, Sensex, rose by 300.83 points or 1.79 per cent to 17,086.47 in opening trade.