Rupee touches new nine-year high of 40.22

Mumbai, July 24: Rupee gradually approached the crucial 40-mark today, touching new nine-year high of 40.22 against the US currency in early trade by drawing strong support from pouring down portfolio investments into Indian equity.

The Foreign investments crossed USD 10 billion so far in the currency year after a record single month inflow of USD 5.8 billion in July.

In active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed strong at 40.22/23 per dollar from overnight close of 40.28/29 a dollar but later was quoted at 40.2450/2550 a dollar in late morning deals.

Forex dealers said that the absence of dollar demand from oil refiners as well as any major intervention by the central bank in the face of unceasing flow of foreign investments helped rupee's surge to new highs.

Asian markets, including Indian bourses, remained strong and the benchmark Sensex soared by 127 points this morning.

The rupee is likely to breach 40 level in the near future if the Reserve Bank of India did not intervene aggressively in the exchange market, traders said.

OneIndia News
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