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Rupee at 2-month high, FII inflows top $2 bn

March 10, 2010 20:12 IST

The rupee on Wednesday rose to nearly two-month high of 45.38/39 a dollar by registering a smart 24-paise gain against the US currency on dollar selling amid sustained capital inflows.

With capital steadily flowing in, the net foreign institutional investment in equity markets has crossed $2 billion, which lifted the domestic currency to nearly two month high, a dealer said.

The BSE benchmark Sensex, bolstered by Budget 2010-11, had regained crucial 17,000 level after a gap of nearly six weeks. On Wednesday, the barometer rose by 46 points or 0.27 per cent to close at a fresh seven-week high.

In active trade at the Interbank Foreign Exchange market, the domestic currency dipped to a low of 45.54 but recovered the losses on sudden bout of dollar selling by exporters. It ended the day at 45.38/39 a dollar.

In global market, the US dollar advanced against the euro and the British pound amidst ongoing concerns about debt problems in the euro zone.

Meanwhile, global crude oil prices were trading over $81 a barrel in London.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 45.41 and for the euro at Rs 61.75.

In cross currency trade, the domestic currency improved further against the pound and euro while recovered against Japanese yen.

The rupee shot up further against the pound to end at Rs 67.80/82 per pound from Tuesday's close of Rs 68.21/23 and also moved up against the euro to Rs 61.76/78 per euro from Rs 61.88/90 previously.

However, it spurted against the yen to Rs 50.18/20 per 100 yen from its last close of Rs 50.81/83.The rupee premium for the forward dollar ended higher on fresh paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in August closed up at 66-68 paise from 63-65 paise on Tuesday and far-forward maturing in February also ended remarkably higher at 129-131 paise from its overnight closing level of 123-1/2-125-1/2 paise.

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