Rupee steady against dollar in early trade

Rupee steady against dollar in early trade

Mumbai: The rupee was almost steady against the US currency in morning trade due to alternate bouts of buying and selling of dollar.

In volatile trade at the Interbank Foreign 9.49/50 a dollar and later fluctuated in a range of 39.55 and 39.42.

It was quoted steady at 39.50/51 a dollar in late morning deals, drawing support from firm equity markets.

Traders, however, anticipated intervention by the Reserve Bank of India (RBI) to cap the rupee’s surge during the day.

The rupee was well supported by consistent and heavy capital inflows into equity markets for the last several days.

The BSE 30-share index opened firm at 17.831.68 and later spurted to a high of 17,913.36 within five minutes of trading, a rise of 136.22 points over yesterday’s close of 17,777.14.

Foreign institutional investors (FIIs) have been pouring in investments into equity market and their inflows amounted to more than 4 billion dollars since September 19.