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Re hits fresh 9-year high of 39.31 a dollar

October 10, 2007 11:37 IST
Source:PTI
Rupee on Wednesday hit a fresh 9-1/2 year high of 39.31 against the US dollar during morning trade, drawing support from the strong surge in Asian equity markets.

The rupee sentiment was also aided by the absence of any dollar demand from banks as well as oil refineries.

In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 39.32/34 a dollar from Tuesday's close of 39.44/45 a dollar and later surge to 39.31 level on the back of heavy capital inflows into equity.

Later, it eased modestly and was quoted at 39.34/35
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per dollar in late morning deals in anticipation of the central bank's intervention to cap the currency's surge.

Traders expected the Indian unit to touch 39 level in the near future due to unceasing portfolio inflows, which reached $16 billion so far in 2007, highest in any single year.

The rupee last hit 39.30 level on February 26, 1998.

The BSE benchmark Sensex on Wednesday surged by 379 pts to 18,659.03 pts on sustained buying by funds and strong FII inflows.
Source: PTI
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