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The rupee jumped 21 paise to a two-and-a-half month high of Rs 50.10/11 against the US dollar on the back of sustained capital inflows and weakness in the American currency overseas.
At the Interbank Foreign Exchange (Forex) market, the rupee opened stronger at 50.30/31 a dollar and immediately hit a low of 50.40 on investor caution in stock markets and month-end dollar demand from importers, mainly oil refiners. However, capital inflows and sluggish dollar in the global markets helped the rupee to bounce back to close at 50.10/11, a net rise of 0.42 per cent. It had ended at 49.47/48 on November 8, 2011.
The following day, the local currency crashed by a whopping 70 paise to settle at 30-month low of 50.17/18 against the US dollar. FIIs continued with the buying spree and have injected almost $1.35 billion in equities in the last 15 sessions. Traders said positive closing of local equities also improved the rupee sentiment.
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