Mumbai: The rupee closed at more than 3-week high at 40.65/66 against the US currency on 2 July, up by another 6 paise, following expectation of robust capital inflows amid dollar sales by exporters.
In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit opened strong at 40.66/68 a dollar from the close last Friday (29 June) of 40.71/72.
Later, it fluctuated in a small range of 40.61 and 40.68 per dollar before concluding the day at 40.65/66.
Bullish equity markets mainly aided the rupee’s firm trend on expectations of more capital inflows in near future. The benchmark Sensex today closed at an all-time high of 14,664.26, up by 13.75 points.
Sustained dollar sales by exporters also boosted the rupee. In straight last three sessions, the rupee had garnered nearly 35 paise.
The local currency continued to get support from high- yielding Asian currencies as the dollar declined virtually across the board Friday amid signs of moderating US inflation.
But according to dealers, there could be a break in the sustained rise in the rupee near 40.50 level on expectation of intervention of the apex bank and spiralling global crude oil prices, which rose past $70 a barrel in Asian trade today.
The rupee’s continued upward march was mainly due to internal factors rather than external, forex dealers said.