Mumbai: The Indian rupee yesterday shot up by a staggering 47 paise to close at nearly a three-and-a-half-month high of 53.30 on sustained dollar selling amid continued capital inflows, after India's centreal bank cut lending rate to boost growth.
Forex dealers said weakening of the United States currency against the euro overseas and a recovery in local equities also favoured the rupee sentiment. The local currency started the day at a firm note at 53.55 from Tuesday's close of 53.77 against the dollar at the Interbank Foreign Exchange (Forex) market. It moved in a range of 53.28-53.60 before settling for the day at 53.30, a gain of 47 paise, or 0.87 per cent.
Previously, rupee had ended at 52.87 on October 17, 2012. "Rupee continued its upward movement today mainly buoyed by the rate cut by the central bank, which has created some sense of optimism in the markets. Also, exporters are on a dollar selling spree. - PTI
as they are expecting this to be the peak for the local unit," IDBI Head (Treasury) N. S. Venkatesh said.