Rupee Builds on Surge, Hits 16-Month High at 65.44

The rupee fell by 31 paise to 66.88 against the US dollar in early trade. (Photo: Reuters)

Driven by its 16-month peak achieved on Tuesday, the rupee on Wednesday acquired more heft as it rose by another 38 paise to 65.44 on sustained offloading of the US dollar amid heavy foreign capital inflows.

Financial markets were enthused by the BJP's emphatic UP victory amid positive macro data while unabated foreign inflows added it up.

The rupee resumed higher at Rs 65.76 as against Tuesday’s closing of Rs 65.82 on Wendesday. It advanced further to Rs 65.41 before trading at Rs 65.44 at 10:20 hours. The domestic currency hovered in a range of Rs 65.76 and Rs 65.41 during morning deals.

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Meanwhile, the dollar index was trading lower by 0.06 percent at 101.68 against a basket of six currencies in the late morning trade.

Overseas, the US dollar remained on tenterhooks in early Asian trade as all eyes are now on the US Federal Reserve meet which will soon offer clues on its monetary policy outlook.

Meanwhile, the benchmark Sensex traded flat, marginally up by 7 points, or 0.02 percent.