The rupee on Wednesday opened at a 8-mth high against the US currency at Rs 44.4950/5050 per dollar due to heavy foreign fund inflows into the equity markets along with weak dollar overseas.
In quiet trade at the Interbank Foreign Exchange (FOREX) market, the Indian unit started the day on a firm note at Rs 44.4950/5050 per dollar, a level not seen since March 21. However, the rupee eased marginally and was quoted at Rs 44.51/52 per dollar, still a shade better than the previous close of Rs 44.52/53.
Sustained inflows by Foreign Insitutional Investors (FIIs) helped the rupee to remained strong against the US currency, dealers said.
FIIs inflows had hit a mammoth $50 billion dollar on last Friday, the highest in single day and a total $135.10 billion during the previous week, they added.
Increased FII buying in domestic shares helped the Bombay Stock Exchange benchmark, Sensex to cross the 14,000 mark for the fist time on Tuesday.
Similarly, the US dollar was weak in New York on Tuesday due to the downward revision of labour costs.