Rupee at fresh nine-year high against dollar

Rupee at fresh nine-year high against dollar
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First Published: Thu, Jul 05 2007. 07 44 PM IST
Updated: Thu, Jul 05 2007. 07 44 PM IST
PTI
Mumbai: Stretching gains for the sixth straight session, the rupee on 5 July improved further to close at new 9-year high of 40.43/44 against the dollar on the back of sustained capital inflows.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the Indian currency opened firm at 40.39/40 a dollar from the previous close of 40.45/46.
Later, dollar buying by oil refinery companies and possibility of intervention by the apex bank weighed on the rupee and it dipped to a low of 40.51 a dollar.
But a firm equity market and dollar selling by exporters helped the rupee to close at new 9-year high of 40.43/44, up two paise over the previous close.
The previous day, it was closed at fresh nine-year peak of 40.45/46 a dollar and also garnered total 57 paise in last six straight sessions.
The rupee had hit intra-day high of 40.28 a dollar on 28 May, while it finished at 39.85 on 13 May 1998.
Bullish trend in equity markets also boosted the rupee sentiment, expecting robust capital inflows in near future into the fast growing economy. Foreign institutional investors (FIIs) remained net buyers in last couple of sessions.
The non-intervention of the central bank even at the current level also aided the rupee’s firm trend.
The rupee also got support from weak dollar overseas as it stayed near a 26-year low against the sterling and 2-1/2 month low against the euro.
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First Published: Thu, Jul 05 2007. 07 44 PM IST