Mumbai: The Indian rupee was higher in afternoon trade on Monday, as hefty gains in the domestic share market renewed expectations of foreign fund inflows, while broad weakness in the dollar overseas also helped.
At 2:10pm, the partially convertible rupee was at Rs50.44/47 per dollar, above Friday’s close of Rs50.66/68. Last week, the rupee rose 1.7%, its biggest gain since the week to 19 December.
Indian shares extended gains to more than 4% by afternoon on Monday, after a fresh plan to clean up the US financial system sparked a rally across Asia.
Data showed foreign investors bought almost $240 million in the three days to Thursday, including $110.1 million on Tuesday, which was their biggest one-day purchase since 6 January. They are, however, net sellers $2 billion so far in 2009.
The dollar index, a guage of the US unit’s performance against majors, was down 0.7%, helping rupee sentiment.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were both quoting at Rs50.5750 each, with the total traded volume on the two exchanges at about $471 million.