Rupee hits new high

The rupee on Thursday ended at a new nine and half year high of 39.49/50 versus the greenback, stronger by 8.50 paise from previous close of 39.5750/5850 on the back of consistent portfolio inflows and in the absence of any major dollar demand as well as weak Asian stocks.

In continued volatile trade at the Interbank Foreign Exchange (forex) market, the local currency resumed marginally lower at 39.58/60 a dollar and later fluctuated in a range of 39.3550 and 39.6350 during the day.

Earlier, the rupee ruled around this levels, when it closed at 39.65 a dollar on April 14, 1998 and at 39.40 a dollar on April 8, 1998.

Influenced by stock market activity, the rupee moved widely during the day even as the Reserve Bank of India (RBI) made a feeble attempt to contain the rupee's surge by making dollar purchases in favour of exporters, forex dealers said.

Foreign Institutional Investors (FIIs), which have poured in more than $4 billion in equity since September 19, remained heavy buyers in shares and supported the rupee sentiment, commented a banker.