Rupee trades stronger, hovers around 9-yr peak

Mumbai, June 4: The rupee emerged stronger today at 40.53 against US dollar and scaled upward drawing vigour from enormous capital flows into the market to register a day's high of 40.44 in the early day trade.

The local currency had settled the trade at 40.54 on previous close.

Investors were seen curious about the rupee's surge and expect further tightening measures from the Reserve Bank of India (RBI) to contain the domestic currency within preferred levels.

According to latest data from traders, the rupee is currently trading at 40.47, a bit down from the opening margins.

The rupee, spurred by capital inflows and positive cues from most Asian currencies, may head back towards the last week's nine-year high of 40.28 in coming sessions, dealers said.

The central bank bought USD 22 billion in the last five months ended March to check the rupee's gains.

UNI