Rupee trades at 40.75 per dollar in morning session
Mumbai, May 8: The rupee was trading at 40.75/76 against the US dollar in the morning session today as compared with the previous close of 40.87/89.
The domestic currency today recovered from the previous session's late losses, as investors tested to see whether the Reserve Bank of India (RBI) had decided to cap the currency's strength.
The rupee had hit 40.53 per dollar on Monday, its highest since May 1998, before skidding lower in late trade as some investors suspected the central bank's intervention.
The rupee gained more than 8 per cent this year, with most of the gains coming in the last two months, boosted by capital inflows into the fast-growing economy, brokers said.
The central bank, which bought USD 19.7 billion in the four months to end-February in a bid to stem the rupee's rise, has stayed away from the currency market recently, dealers added.
UNI