The Indian rupee extended gains against the US dollar to 29 paise in early trade on the Interbank Foreign Exchange today amid a rally in domestic equities.
The Indian rupee resumed higher at 44.79/80 on the Interbank Foreign Exchange as against Wednesday’s close of 44.94/95 and moved up further to 44.65 before edging down slightly to 44.68/69 per dollar at 1030 hours.
Forex dealers said weakness of the dollar overseas, coupled with persistent foreign fund inflows into the domestic equity market, assisted the rupee’s rise against the dollar.
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The Indian benchmark Sensex was up by 225 points, or 1.12 per cent, in early trade on the Bombay Stock Exchange today as investors bought heavily, tracking persistent capital inflows from foreign funds.
Meanwhile, in New York, the US dollar suffered its worst quarterly loss in more than eight years in the three months ended yesterday and was heading towards a five-month low against the euro.