Tracking strong performance in Indian stocks, the rupee on Monday appreciated 12 paise against the US dollar to end at an over six-and-a-half month closing peak of 60.77 buoyed by sustained capital inflows.
Continued dollar selling by exporters also aided the rupee’s upward journey for the second session in a row even as the dollar index was trading up 0.14 per cent against a basket of six major global currencies.
Overseas funds pumped in over Rs 1,465 crore in Indian equities today, helping benchmark indices hit fresh highs.
At the Interbank Foreign Exchange (Forex) market, the rupee resumed slightly lower at 60.92 a dollar from last weekend’s close of 60.89.
While it touched a low of 60.93 soon after, a strong recovery mirroring jump in Indian shares pushed the rupee to a intra-day high of 60.6450. It settled for the day at 6-1/2-month high of 60.77, a rise of 12 paise or 0.20 per cent. Last Friday, it shot up by 45 paise or 0.73 per cent.The rupee had last closed at 60.77 on August 6, 2013.
“I certainly believe ... the economy has stabilised and that is reflected in rupee and stock markets. And going forward, I think, we will see growth numbers also improving,” Economic Affairs Secretary Arvind Mayaram said in New Delhi.