Rupee gains 99 paise

Mumbai, Sep 10 -The rupee continued to rule firm for the fourth straight day by surging further by 99 paise to 64.25 per dollar on persistent selling of US currency by banks and exporters in view of sustained foreign capital inflows on the back of strong equity market.

 

The rupee resumed higher at 64.40 against the last weekend's level of 65.24 per dollar at the Interbank Foreign Exchange Market and moved up further to 64.15 before quoting at 64.25 per dollar at 10.40am

 

It moved in a range of 64.15 per dollar and 64.45 per dollar during the morning deals. Banks and exporters preferred to reduce their dollar position on expectation of more foreign capital inflows into equity market.

 

The rupee had settled at 77 paise higher at 65.24 against the dollar on Friday. The forex and money markets remained closed on Monday on account of Ganesh Chaturthi.

 

The rupee has gained 239 paise, or 3.53 per cent, in the past three sessions. Traders said the rupee is supported by persistent dollar selling by exporters and banks and a higher opening in the equity market amid measures announced by the RBI last week to curb the domestic currency's slide.

 

The dollar's weakness against other currencies overseas also supported the rupee's sentiment, they said.

 

The new RBI governor last week announced measures such as liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident ( FCNR) deposits and dollar funds to support the rupee.

 

SOURCE: TOI