Rupee at all time high since 1998

Mumbai, Oct 04

Rupee rose to its strongest level against the dollar in 9-½ years on Thursday as dealers bought the local unit aggressively in anticipation of strong overseas investments into the stock market.

At 2:04 p.m., the partially convertible rupee was up 0.4 percent at 39.42 per dollar, its strongest level since March 1998 and above Wednesday`s close of 39.575/585.

Earlier, in volatile trade at the interbank Foreign Exchange (Forex) market, the local currency resumed slightly lower at 39.58/60 per dollar from yesterday`s close of 39.5750/5850 a dollar and later was quoted 39.57/58 a dollar in late morning deals.

There was little activity in forex market but the rupee activity was largely influenced by sustained and unprecedented portfolio investments in equity markets, dealers said. Foreign Institutional Investors (FIIS) have poured in about USD 4 billion since September 19 after the US Federal Reserve cut the key interest rates.