Mumbai: Firming equity markets and fall in global crude oil prices led the Indian rupee to surge further by 23 paise to 42.01/03, against the greenback in early trade.
At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed at 42.08/10 a dollar from the previous close of 42.24/25 and rallied further to breach the 42-mark at 41.97, the level not seen since 24 July, 2008, before being quoted at 42.01/03 in late morning deals.
A sharp rise of over 375 points in the Indian benchmark Sensex, mainly helped the rupee rally. Most of the Asian indices were also trading distinctly firm this morning.
Fall in global crude oil prices near $118 a barrel also supported the rupee as oil companies refrained from buying dollars in anticipation of further fall in dollar.
A status-quo stance taken by US Federal Reserve yesterday on interest rate also partly aided the rupee sentiment.