BUSINESS

Rupee touches 8-month peak at 43.65 to a dollar

MUMBAI, DEC. 6. An unprecedented 49 paise rise today drove the Indian currency to a nearly 8-month closing peak of 43.64/65 a dollar, buoyed by bunched up weekend dollar supplies from robust foreign fund and trade inflows amidst a sliding dollar overseas.

In active trade at the foreign exchange market, mainly dominated by dollar sellers, the rupee surged to the day's peak of 43.60/62, before ending at 43.64/65 a dollar the levels last reached on April 12.

It opened distinctly firm at 44.00/02 a dollar due to a tumbling dollar against major global rivals.

With today's massive 49 paise gain, the rupee has appreciated by 140 paise since November 25, driven up by sustained heavy foreign portfolio investments and trade inflows.

Sentiment has turned distinctly positive for the rupee owing to a continuous flow of heavy FII and trade funds.

Persistent hectic dollar supplies from strong FII and trade inflows in the face of a tumbling dollar overseas drove the rupee to new multi-month high with the outlook upbeat for further gains, dealers said.

However, fears of central bank intervention in defence of the rupee may contain further steep gains.

Meanwhile, global crude oil prices slipped to $42.26 a barrel on expectation of lower winter demand, which is another plus point for the rupee.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 43.83 a dollar and the single european unit at Rs. 58.88 per euro. — PTI

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