Re ends at 12-month high of 46.88/89 a $, up by 63 paise

The Indian rupee today gained 63 paise to close at one-year high of 46.88/89 against the US currency on heavy $ selling by corporates and exporters, prompted by weakness of the greenback in the overseas markets.

Forex dealers said increased capital inflows also boosted the rupee sentiment. They further said that they expect the Reserve Bank intervention to tap the gain of rupee at above 47-level.

They said exporters and corporates heavily sold dollars after the American unit slid further against a basket of currencies in overseas markets following weaker-than-expected US job data. The dollar was under pressure since yesterday.

Dealers said exporters and corporates sold dollars in the spot market and bought them at lower levels at forward markets, thus making profits.

Foreign Institutional Investors continued their buying spree and they picked up shares worth $12.7 billion in the current calender year so far, as per market regulator SEBI.

In active trade at the Interbank Foreign Exchange (Forex) market, the domestic currency opened stronger at 47.32/33 a $ from its previous close of 47.51/52 per $ and breached the 47-mark to touch a high of 46.89.

It later ended at 46.88/89 a $, the level not seen since October 1, 2008 when the rupee closed at 46.62/63 a $.

The local unit today gained a whopping 1.34 per cent after rising by 61 paise and rose 1.27 per cent in the last two sessions.