Rupee rallies to more than 1-month high vs USD at 59.51

Mumbai, May 12: The rupee today rallied to one month high of 59.51 against the American currency on dollar selling by banks and exporters in the morning trade on the back of strong foreign capital inflows into equity market.

The rupee resumed higher 59.98 per dollar as against the last weekend's level of 60.04 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to more than one-month high at 59.51 per dollar before quoting at 59.62 per dollar at 1000 hrs.

It was last traded at 59.50 per dollar on April 2, 2014. It moved in a range of 59.51 per dollar and 60.03 per dollar during the morning session.

Banks and exporters preferred to reduce their dollar position in view of persistent foreign capital inflows into equity market. The benchmark Sensex rose to all-time high of 23,410.36 before quoting at 23,281.48 at 1000 hrs, showing a gain of 287.25 points of 1.25 per cent from its last weekend's level.

However, in New York Market, the euro slid against the dollar on last Friday, dropping through the USD 1.38 threshold to its lowest level in a month as traders continued to react to the dovish tone of the European Central Bank.

PTI