Notching up another nine paise from Monday’s 23-month closing high of Rs 46.99/47.00, the rupee maintained a bullish trend on the back of sustained heavy inflows from exporters and non-resident Indian (NRI) remittances, dealers said.
It opened on a firm footing at Rs 46.9750/9850 per dollar and touched intra-day highs of Rs 46.89/90.
“Supplies (of dollar) kept pouring in and demand for the dollar could not keep pace with it,” said Manbir Bawa, senior analysts and currency strategist at Mecklai Financial, a premier forex brokerage house.
The Reserve Bank appears to comfortable with the strengthening rupee, and as long as the dollar is weak against other international currencies like euro we’ll see the bearish sentiments for the dollar, Bawa said.
The rupee spurted by 15 paise yesterday and scaled a 23-month closing high after breaching the crucial 47-dollar barrier. It has appreciated by a whopping 45 paise in the last ten straight sessions and by about 111 paise in the current calendar year.
Gold prices zoomed by Rs 120 per ten gram today to end at a 14-week high on the back of frantic buying as prices in the global markets shot up after a steep fall in the dollar. However, silver was down as gold remained the centre of activity, dealers said.
Standard gold (99.5 purity), after a firm start at Rs 5,700, jumped up further to close at Rs 5725, a level not seen since February 14, revealing a rise of Rs 120 over yesterday's close of Rs 5,605.
According to marketmen, a large chunk of the inflows are going into the equity markets. As the rupee strengthened, the equity markets staged a recovery with Infosys leading the rally today. The BSE sensex gained 19 points in lacklustre activity on the bourses on selective buying by local funds and speculators.