Rupee rises to near 5-month high of 52.55 against dollar

Mumbai, Sept 28: Moving in line with the strong equity market, the

shot up to five-month high of 52.55 a

this morning due to fresh selling of the American currency by banks and exporters.

Sustained foreign capital inflows coupled with weak dollar overseas bolstered the rupee, which resumed higher at 52.73 per dollar, from 53.02 yesterday, at the Interbank Foreign Exchange (Forex) Market.

It firmed up further to a five-month high of 52.55 per dollar, before quoting at 52.68 at 1100 hrs. The rupee last traded at 52.55 on May 2, 2012. Persistent capital inflows from foreign funds in equity market mainly boosted the rupee value, a forex dealer said.

The BSE 30-stock index, Sensex, rose 268 points or 1.44 per cent to 18,846.96 at 1100 hrs. In New York market, the euro strengthened against the dollar in choppy trading yesterday, after Spain outlined its budget plans to contain deficit.

The move is being viewed by investors as a key step towards resolving European Union's overall debt crisis.

PTI