Mumbai: The rupee crept up on Tuesday as exporters cashed in on some of their dollar holdings after the local unit fell to its lowest close in more than five months on Monday.
At 9:13 am, the partially convertible rupee was at 40.29/30 per dollar, stronger from Monday’s close of 40.39/40, its lowest finish since 18 September.
Capital flows are a key driver of the local unit. Foreigners have sold $3 billion worth of stocks so far in 2008 after buying $17.4 billion in 2007. The benchmark stock index fell 5.1% on Monday on worries of a US recession.
Asian stocks edged higher on Tuesday, recovering from the previous session’s tumble as the dollar halted its fall, while gold and platinum hovered at or was near record highs.