Rupee surges further against dollar in early trade

Rupee surges further against dollar in early trade

Mumbai: The rupee on Wednesday surged by five paise against the US currency on the back of capital inflows and firm equity market.

The rupee sentiment was boosted by the absence of dollar demand from oil refiners, which normally purchases the greenback to meet their oil import bills at the month-end.

In active trade at the Interbank Foreign Exchange (forex), the local currency resumed steady at 39.42/44 per dollar from Monday’s close of 39.44/45 a dollar, but later shot up to 39.3850/3950 a dollar in late morning deals.

Forex dealers attributed the absence of month-end dollar demand to the closure of world crude markets due to Christmas holidays.

Firm equity market and expectations of portfolio inflows, however, continued to strengthen the rupee, dealers said.

The benchmark Sensex was up 182 points during morning trade, while Asian indices were narrowly mixed.