The Rupee appreciated to 39.83/84 against the US currency in late morning deals on Monday following sharp rally in equity markets amid heavy capital inflows.In active trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened strong at 39.85/86 a dollar from last Friday''s close of 39.90/91.
It improved further to 39.83/84 in late morning deals and touched a new nine-year peak of 39.81, the level not seen since May 1998.
Heavy capital inflows also boosted the rupee sentiment. Foreign Institutional Investors (FIIs) remained net buyers in last week and they pumped in nearly $2 billion in the current so far and over $10 billion in the year 2007 till last week.
After US interest rate cut, foreign investors preferred to invest in high yielding currencies like rupee. Expectations of the central bank''s intervention weighed on the rupee last Friday.
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