Rupee at two-month high

With a strong flow of portfolio investment in the capital market, the rupee on Tuesday closed at a two-month high of 50.71 against dollar.

Traders said the rupee continued its rally for the fourth day in a row. The flow of money by foreign institutional investors and continued dollar selling by exporters and some banks aided the rupee’s rise. A sharp fall in the dollar abroad also helped push the rupee higher. According to Bloomberg data, the rupee advanced 1.3 per cent to 50.71 per dollar at close, the strongest level since November 17. It had closed at 51.39 yesterday. Foreign funds raised holdings of Indian debt by $3 billion this month to a record $29.1 billion as on January 13, while investments in stocks rose by $559 million.