Rupee continues to rule firm against dollar, up 24 paise

Mumbai, Oct 5: The rupee erased some of the early gains in the late morning trade, but was still up by 24 paise at 51.50 a dollar on persistent selling of the American currency by banks and exporters amid strong capital inflows after the government unleashed second phase of reforms yesterday.

Persistent capital inflows from foreign funds into the equity market mainly supported the local unit, forex dealers said, adding that weakness of dollar in the overseas market also boosted the rupee's value. In New York market, the dollar fell against the euro yesterday after the European Central Bank kept interest rates and other aspects of its monetary policy steady and signalled it stands ready to purchase bonds when a country asks for financial support.

Back home, the rupee resumed higher at 51.35 per dollar against the last closing level of 51.74 at the Interbank Foreign Exchange (Forex) Market. It moved in the range of 51.35 and 51.70, before quoting at 51.50 at 1045 hrs. Meanwhile, the BSE benchmark Sensex, resumed higher and firmed up further to 19,137.29 points, but declined afterwards to 18,757.34 before quoting at 18,922.85 at 1050 hrs, a loss of 135 points, or 0.71 per cent.

PTI