Portfolio Inflows Pick Up Re To Record High

Mumbai: The spot rupee broke the crucial barrier of 40 to close at a nine-year high of 39.88/89. The appreciation has been primarily on the back of vast foreign exchange inflows into the Indian market and also partly due to impact of dollar weakness globally. Pound sterling and euro appreciated to $2.0075 ($1.9991) and $1.4040 ($ 1.3967) globally. The rupee had reached a high of 39.22 to a dollar in first quarter of 1998. Besides portfolio inflows into the Indian equity market, banks and exporters also sold dollars frantically since they were expecting the rupee to depreciate to 40.30 through purchase of dollars by the central bank''s part of intervention.