Rupee extends gains, ends at 40.56 a dollar
The rupee continued its upward journey to fourth straight day and ended at 40.5625/5700 against the US currency on Wednesday, stronger by about four paise amid suspected intervention by the central bank.
In a relatively lacklustre trade at the Interbank Foreign Exchange (forex) market, local currency traded in a range of 40.53 and 40.60 during the day after resuming at 40.55/57 per dollar. It closed at 40.60/61 a dollar on Tuesday.
The rupee drew support from heavy FII inflows in the past few days coupled with China's revision of trading bank for yuan on Monday but the central bank's intervention indirectly trimmed the rupee's gains, forex dealer said.
Some public sector banks made fairly good dollar buying at the behest of the Reserve Bank of India (RBI), which is believed to be intervening to prevent the rupee's surge in the interest of exporters, a dealer with a foreign bank said.
A leading public sector oil company also was seen making dollar purchases during the day, they added.
Foreign Institutional Investors (FIIs) have pumped in USD 747 million in equity in four sessions between May 17 and 22.