Rupee rises further against dollar

The Indian currency continues its rally against the greenback due to increased inflow of dollar and its weakness.

The rupee was quoted higher against the US currency at Rs 46.09/11 per dollar at the opening session on the Interbank Foreign Exchange (FOREX) market on Friday due to increased inflow along with weak dollar in the overseas markets.

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In moderate activity, the Indian unit opened smartly firm at Rs 46.09/11 per dollar from Thursday's close of Rs 46.13/14, but soon eased marginally and was quoted at Rs 46.11/12 per dollar, still firmer than the previous close.

To a certain extent, forex dealers attributed the rise in rupee to weak dollar against euro.

The dollar was slightly weaker against the euro on Thursday following retail sales data in the US, they said, adding that the US currency would face a bigger test on Friday when US consumer price inflation date will be out.

Oil companies which had bought dollar when crude prices were higher, offloaded part of their holdings during the early part on Thursday, but only to buy again after oil prices were quoted steady at $64 per barrel.