Mumbai:
Boosted by heavy capital inflows and higher dollar
premium in the forward market, the rupee recovered to
touch a new nine-year high of 40.34 against the US dollar
in morning trades.
Fairly
active trades at the Interbank Foreign Exchange (Forex
market), saw the rupee higher at 40.38 / 39 a dollar from
yesterday''s close of 40.40 / 41 and later touched the
40.34 level before being quoted at 40.3700 / 3750 in late
morning deals.
Attributing
the rupee''s surge against the greenback to a surge in
dollar premiums and heavy foreign investment flow, Forex
dealers said the market also witnessed some dollar selling
by exporters.
Traders,
however, anticipated some moves by the central bank to
intervene in the exchange market as the rupee has appreciated
further against the US unit.
Weakness
in overseas dollar also contributed to the rupee''s turnaround,
they added.
In
New York market, the dollar hit an all-time low against
the euro on Wednesday.
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