Rupee up further vs dollar at 40.71/72

The rupee on 21 June appreciated further against the greenback and ended at 40.71/72 on the back of a firm equity market on expectations of robust capital inflows.
In quiet and rangebound trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened weak at 40.80/82 a dollar against the previous close of 40.7450/7550 following dollar purchases by oil refining companies.

Global crude oil remained high near $69 a barrel in Asian trade on 21 June.
Later, it recovered and rallied smartly to touch a high of 40.70 before ending the day at 40.71/72 a dollar, 3.5 paise higher than the previous close.

Attributing a weak start to some pressure on the rupee due to dollar purchases by oil companies, forex dealers said the currency, however, drew support from comfortable capital inflows into equity markets.

The country is expected to get substantial portfolio inflows in the month after the mega IPO launched by real estate major DLF Ltd, which is followed by a public issue of $2 billion by the country’s largest private sector lender ICICI Bank.

The benchmark Sensex today gained 87 points at close, continuing its upward movement for the fourth day in a row.

In New York yesterday, the dollar was down against other major currencies, partly helping the rupee’s surge.