Rupee hits new nine year peak

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Mumbai, Oct 3: Nearly USD 2 billion that flowed to the domestic equities and the resultant boom in the Sensex today gave a massive push to the rupee, taking it to a fresh nine year high at 39.58 per US dollar.

According to dealers, Rupee had attained these level last in April, 2008.

The Sensex, which gained by a massive 518.42 points to settle at an all time high of 17,847.0,4, contributed largely in moving the home currency nearly 22 paise up and later settle at 39.58 per US dollar, said dealers.

''Total inflows has crossed USD 15 billion this year. Increasing levels of inflows are virtually leaving the regulator helpless in mooting a correction on the appreciating currency.'', said Sudharshan Bhatt, Chief forex dealer, Corporation bank.

According to dealers, rupee may go further up and may even touch 39.50 per dollar if the inflows continue to be stronger.

Though Reserve bank's presence was palpable in the forex market in the forenoon session, it had apparently supported rupee in later sessions, said sources.

The home currency, which started weak in morning at 39.86/88 per dollar, shot up in the followed consecutive sessions with RBI seemingly supported the unit's gains.

The move was rippled in the forward premia as well as six month premium was quoted high at 1.11(0.60) percent while annualised premium ended at 1.11(0.85) percent.

Against Euro, the rupee ended at 56.37(56.55), against Pound Sterling at 81.02(81.32) per unit each while Yen was quoted at 34.22(34.42) per 100 units each.

Reserve Bank of India (RBI) today fixed the reference rate at Rs 39.79 per US Dollar.


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