Rupee strengthened to its highest in a week on Oct 31 against the greenback on the back of sharp rise in equity markets and expectations of fresh capital inflows after slashing of interest rates by US Federal Reserve. Rupee ended at 49.44/46 per dollar, its strongest since October 22, and 0.5 per cent above Wednesday''s close. The market was shut on Thursday for a local holiday.
In active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed strong at 49.45/47 and moved up further to quote at 49.34/35 a dollar in late morning deals from previous close of 49.67/68. It moved in a range of 49.52 and 49.29 a dollar. According to forex dealers, the rupee got support from sharp rise in Indian benchmark sensex, which was up by 756 points or 8.36 per cent at 1030 hrs.
They also expect fresh inflows from foreign funds after cutting of key interest rates by 50 basis points by the US Federal Reserve. In New York yesterday, the Dow Jones Industrial Average and the Nasdaq Composite Index ended higher while Asian indices were quoting mixed this morning. Lack of any dollar buying by oil refiners and importers also helped the rupee surge. Global crude oil was quoting lower at nearly USD 64 a barrel in Asian trade today.
In active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed strong at 49.45/47 and moved up further to quote at 49.34/35 a dollar in late morning deals from previous close of 49.67/68. It moved in a range of 49.52 and 49.29 a dollar. According to forex dealers, the rupee got support from sharp rise in Indian benchmark sensex, which was up by 756 points or 8.36 per cent at 1030 hrs.
They also expect fresh inflows from foreign funds after cutting of key interest rates by 50 basis points by the US Federal Reserve. In New York yesterday, the Dow Jones Industrial Average and the Nasdaq Composite Index ended higher while Asian indices were quoting mixed this morning. Lack of any dollar buying by oil refiners and importers also helped the rupee surge. Global crude oil was quoting lower at nearly USD 64 a barrel in Asian trade today.
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