Rupee continues to rule firm vs dollar

Mumbai, Oct 11: The Indian rupee continued to rule firm, appreciating by 4 paise against the US dollar in early trade on Oct 11 on persistent selling of dollars by exporters and banks in view of weakness of the American currency in overseas markets.

The rupee resumed higher at Rs 48.90/91 per dollar on the Interbank Foreign Exchange, as against its last close of Rs 48.97/98 per dollar after three sessions of gains, and moved up further to Rs 48.86 per dollar before quoting at Rs 48.93/94 per dollar at 1030 hours.

It moved in a range between Rs 48.86 and Rs 48.94 per dollar during morning deals. Sustained selling of dollars by exporters and banks on the back of a lower dollar in the New York market mainly boosted the rupee sentiment, a forex dealer said. Resumption of capital inflows from foreign funds into the equity market also helped the rupee's rise, he added.

In the New York market, the euro rose the most against the US dollar since Jan yesterday after France and Germany vowed to act to safeguard European banks.

Meanwhile, the Indian benchmark Sensex shot up further by 160 points, or 0.96 per cent, in early trade.

PTI