Mumbai: The rupee strengthened on 4 January against the US currency in morning trade on account of fresh dollar selling by exporters and strong equity markets.
Dollar’s weakness against the euro and the Japanese yen also aided the rupee sentiment. In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed better at 39.38/39 a dollar from overnight close of 39.39/40 a dollar and later appreciated to 39.32/33 a dollar in late morning deals.
Sustained dollar sales by exporters and firm trend in Asian equity markets drove the rupee by about seven paisa in early trade, forex dealers said. High crude oil prices, which crossed the $100 a barrel level in New York trade on 3 January, also caused concerns among investors and triggered dollar unwinding, they added.
Asian markets, particularly Japan and Hong Kong, were strong this morning while the Indian benchmark Sensex shot up by 178 points on firm global cues. Meanwhile, the dollar ended lower against major world currencies on 3 January after more soft US economic data caused worries that the country may be slipping toward a recession.