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Rupee hits fresh nine-year high of 40.37 a dollar

Rupee hits fresh nine-year high of 40.37 a dollar
PTI
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First Published: Tue, Jul 10 2007. 07 52 PM IST
Updated: Tue, Jul 10 2007. 07 52 PM IST
Mumbai: The rupee today ended at a fresh nine-year high of 40.3725/3825 against the US currency on sustained capital inflows into the country and in the absence of any dollar demand.
The local currency had touched 40.53 level on 20 May and 39.85 mark on 13 May 1998.
In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit moved in a small range of 40.37 and 40.43 after resuming strong at 40.39/40 per dollar from 9 July’s close of 40.42/43 a dollar.
Forex dealers said the rupee continued to drew support from consistent and heavy foreign investment flow, which in turn, attracted traders to build positions in the local currency.
Traders anticipated some dollar demand from public sector banks at the behest of the Reserve Bank of India (RBI) but dollar buying was not forthcoming despite global oil prices hovering around $72 per barrel, they added.
The RBI which seemed interested in holding the rupee at 40.50 level for the past one month, failed to get the opportunity to intervene in exchange market in view of a substantial portfolio inflows in the last six to seven days, a leading dealer with a foreign bank said.
FII inflows into equity markets has driven the rupee by about 9.5% so far in the calendar year.
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First Published: Tue, Jul 10 2007. 07 52 PM IST
More Topics: Money Matters | Currency |