Rupee recovers against US dollar

Rupee recovers against the US dollar to 39.7650/7750 in late morning deals following heavy capital inflows.

Rupee on Monday recovered against the US dollar to 39.7650/7750 in late morning deals following heavy capital inflows.

In lacklustre trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened strong at 39.75/77 a dollar from last Friday's close of 39.81/82 per dollar.

Later, it was quoted steady at 39.7650/7750 a dollar in late morning deals.

Forex dealers attributed the recovery in the rupee to sustained foreign funds inflows into the equity markets which crossed nearly USD 4 billion in September and also pierced through an all-time high registered in 2005 to touch $ 12 billion in the current year so far.

There was not much intervention from the central bank to stem the surge in the rupee.

Meanwhile, the benchmark Sensex, after resuming strong, was down by 89.19 points at 10 30hrs to touch 17,201.91.