Rupee touches 9-yr high; rises 42.30 against USD

Mumbai, Apr 16: The Rupee today marked a record nine-year high to rose past a much stronger rate of 42.30/32 against the US dollar, compared to last Friday's close of 42.51/52.

The Indian currency opened at 42.50/52 and had a intra-day low of 42.55 before staging a major come back to the intra-day high of 42.26. Currently, it is trading at 42.30/32.

The return of the Rupee is a record since November, 1998, despite witnessing the Reserve Bank of India (RBI) intervention.

Strong capital inflows to the market is considered as the reason behind the boosting of the domestic unit, dealers said.

Traders said capital inflows were boosting the Rupee while no signs of dollar absorption were noticed from state-run banks.

Sentiment was boosted with data showing India's forex reserves topping the USD 200 billion mark for the first time.

Amidst a mood heavily biased against the dollar in spot, forward premia edged up by upto 15 paise, as against the over 30 paise rally of the spot rupee resulting in cheaper absolute forward levels.

UNI