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Rupee rallies to 2-mth high against dollar, up 64 paise

PTI  Mumbai, September 14, 2012
First Published: 12:19 IST(14/9/2012) | Last Updated: 12:21 IST(14/9/2012)

The rupee rallied to two-month high of 54.79 a dollar on Friday on fresh selling of the American currency by banks and importers amid strong equity markets and sustained capital inflows.

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The dollar has also weakened against other currencies in the overseas forex markets.

The dollar fell in New York market yesterday after the Federal Reserve announced a new bond-purchase programme to bolster the US economy. The central bank's steps sent US stocks much higher, reducing demand for the American currency.

Back home, the rupee resumed lower at 55.85 a dollar as against yesterday's closing level of 55.43 at the Interbank Foreign Exchange (Forex) market. However, it recovered soon to a high of 54.63 a dollar, before quoting 54.79 at 1040 hrs.

Capital inflows from foreign funds in equity markets also boosted the rupee, said a forex dealer.

The BSE 30-stock index, Sensex, was up 389 points or 2.16% at 18,408.25 (1100 hrs), in line with strong global markets and the government's move to hike diesel prices by Rs. 5 a litre to cut subsidies and reduce fiscal deficit.


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