Mumbai: The rupee on 28 March ended at more than seven-year-high of 43.04/05 against the US currency as banks stepped up dollar sales in a bid to generate funds to tide over cash crunch in the money market.
In brisk activity at the Interbank Foreign Exchange (forex) market, the local currency fluctuated in a wide range of 43.02 and 43.23 before ending at its strongest level since June 1999, buoyed by weak dollar overseas coupled with fairly heavy capital inflows.
The absence of the Reserve Bank of India (RBI), which is expected to check the rupee’s sustained surge against dollar, also aided the rupee sentiment for the third consecutive day.
Meanwhile, dollar weakened against the yen and the euro on 28 March after US consumer confidence fell below the market expectations, raising fears of a slowdown in economy.
Foreign Institutional Investors (FIIs) pumped in USD 500 mln into the equity markets between 20 and 26 March.
The RBI, however, fixed the reference rate for the US currency at Rs43.14 a dollar and for the single European unit at Rs57.58 per euro.
The rupee premiums on forward dollar ended lower on receiving by exporters.