Mumbai: The rupee moved up by two paisa to 39.26/27 against the greenback on 15 January, on expectations of heavy portfolio inflows in the Reliance Power IPO, which was fully subscribed on the first day of opening amid weak dollar overseas.
In lacklustre trade at the Interbank Foreign Exchange (Forex) market, the rupee opened firm at 39.26/27 a dollar against the last close of 39.28/29.
Later, it moved in a narrow range of 39.2750-39.2600 a dollar before being quoted at opening level of 39.26/27 late morning.
The rupee is getting support in anticipation of heavy inflows through IPO route.
Anil Ambani Group’s Reliance Power IPO got fully subscribed within minutes of its book building process, which started this morning.
Dealers expected nearly $1 billion from foreign funds, supporting the rupee.
But expectations of intervention by the Reserve Bank of India at the rupee’s higher levels might cap the surge.
In New York, the dollar declined against major rivals on Monday, worrying over the likelihood of more Fed rate cuts and further economic fallout from the US subprime mortgage mess.
Meanwhile, most Asian markets were down this morning and the benchmark Sensex fell further by 69 points at 1030 hrs.