Rupee recovers 38 paise to 54/dollar

Fresh selling of dollar from banks & exporters amid expectations of more foreign capital inflows boosted rupee value

Moving in line with equity market, the rupee recovered 38 paise to 54 a dollar today on fresh selling of the American currency from banks and exporters amid expectations of more foreign capital inflows.

Weak dollar in the overseas market also boosted the rupee value, a forex dealer said.

The rupee resumed higher at 54.15 per dollar as against last closing level of 54.38 at the Interbank Foreign Exchange (Forex) Market and firmed up further to 54.00 at 1040 hrs. It moved between 54 and 54.20 a dollar in the morning deals.

The BSE 30-stock index, Sensex, advanced by 247 points in the on fresh buying after the government notified its decision to allow FDI in the multi-brand retail sector.

Last evening, unfazed by opposition even from its own allies, government went ahead implementing its decisions to allow FDI in multi-brand retail and liberalise foreign investment in aviation and broadcasting sectors.

In Sydney market, the dollar declined as investors bought stocks and commodities, with some analysts now expecting more weakness of the American currency.