Towards capital a/c convertibility
Senior bankers and foreign exchange dealers do not expect any major changes in the forex flows immediately, even as finance minister Jaswant Singh announced a slew of measures taking the country one step forward towards full convertibility of the rupee.
The rupee dropped today after a four-day rise against the greenback as public sector banks bought dollars on behalf of the central bank. The Indian unit finished at 47.9700/47.9750 per dollar, down 0.07 per cent from its previous close of 47.9350/47.9400. Traders said the currency did not react to news that the government had relaxed overseas investment norms.
Forwards ended a bit firmer. The benchmark six-month forward closed up at 3.54 per cent, against its previous 3.48 per cent.
The finance minister
