Rupee trades stronger at 40.54/55 per dollar

Mumbai, May 28: The rupee today regained its strength against dollar to trade at 40.54/55 as state-run banks bought dollars possibly on behalf of the Reserve Bank of India, according to traders.

The domestic unit had closed trade at 40.59/60 on Friday.

Strong capital inflows were visible in the market, supporting rupee. The oil refiners were seen actively buying dollars for import payments toward the month-end, dealers said.

Foreign investors bought more than US 3.7 billion dollars of local equities this year, after investing nearly USD 8 billion in previous year.

The central bank had bought USD 2.3 billion in March and is expected to intervene in market in coming sessions also to stem the rupee's gains.

UNI