The Indian rupee rose by 28 paise to a nearly three-year high of Rs. 43.90 per U.S. dollar in early trade today due to persistent selling of the American currency by banks and exporters in view of the sharp fall of the dollar in overseas markets.
The rupee resumed higher at Rs. 44.09/10 per dollar as against its overnight closing level of 44.18/19 per dollar and moved up further to 43.90 per dollar before quoting at 43.94/95 per dollar at 1030 hours.
The domestic currency moved in a range between Rs. 43.90 and Rs. 44.10 per dollar in morning deals.
The Indian rupee was last being traded lower this level on August 29, 2008, when it was quoted at Rs. 43.71 per dollar.
Banks and exporters preferred to reduce their dollar holdings due to weakness of the American currency in the overseas market, a forex dealer said.
In the New York market, the U.S. dollar fell against a wide range of currencies yesterday, touching a record low against the Swiss franc and approaching a recent low versus the Japanese yen.
Selling in the U.S. currency came after back-to-back speeches late Monday by President Barack Obama and House Speaker John Boehner revealed no progress on a deal crucial to raising the U.S. debt ceiling and preventing a default.
