Rupee Stronger Against Dollar

Rupee turned stronger against the US currency on On October 23 and recovered by about 17 paise following a sharp rally in Asian equity markets.In active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 39.81/82 a dollar from On October 22''s close of 39.88/89 a dollar.It later surged to a high of 39.67 per dollar before being quoted at 39.71/72 a dollar in late morning deals.

Rupee was driven higher by a 597-point jump in the Bombay Stock Exchange benchmark Sensex this morning to touch 18,211.17. Asian markets too were strong during morning trade. The rupee also drew support from the market regulator SEBI''s decision to allow the sub-accounts of FIIs, which is expected to increase capital inflows into equity.

The market regulator last evening decided to allow proprietary sub-accounts of FIIs to apply for a full licence if they are used for their own trading and to put registration of FIIs on the fast track. Forex dealers said the rupee sentiment was also aided by the absence of any dollar demand from oil companies.