Mumbai: The Rupee recovered sharply against the dollar on 31 August, ending over 28 paise up at 40.8750/8850 on the back of smart rally in equity markets.
In active trade at the Interbank Foreign Exchange (forex) market, the domestic unit opened strong at 41.09/11 a dollar from yesterday’s close of 41.16/17.
Later it improved further and closed the day at 40.8750/8850 per dollar.
Fall in the inflation rate and consistent smart economic growth also aided the domestic unit firm up, although it largely drew support from petering out dollar demand.
Oil refiners were consistent buyers in the greenback in the last few days to meet their month-end payments.
Firm equity markets was the main factor in favour of the rupee, forex dealers said.
Mumbai: Rupee turned stronger by about 11 paise against the greenback in late morning deals on 31 August, buoyed by a firm trend in equity market and weakness in dollar overseas.
In active trade at the interbank foreign exchange (forex) market, the local currency resumed firm at 41.09/11 from overnight close of 41.09/11 and later surged to 41.0450/0550 per dollar in late morning deals.
The benchmark Sensex surged further by about 67.40 points during morning trade to touch 15,189.41, gaining more than 1,000 points since 24 August.
The weak dollar overseas markets also aided the rupee sentiment.
The rupee also drew support from petering out dollar demand. Oil refiners were consistent greenback buyers the last few days to meet their month-end payments.
Forex dealers said firm equity markets and weak dollar overseas were the main factors working in favour of rupee.
Dollar’s weakness in international markets was attributed to indications of a possible interest rate cut.