Rupee strengthens by 32 paise to 50.06/$

The Indian rupee strengthened by 32 paise to 50.06 against the greenback in early trade today on fresh dollar selling and gradual improvement in capital inflows into equity.

In fairly active trade at the Interbank Foreign Exchange (forex) market, the domestic currency resumed steady at its overnight closing level of 50.38/39 a $ and later surged to 50.06 level before being quoted at 50.17/18 a $ in late morning deals.

Forex dealers said the rupee was well supported on increased expectations of capital inflows, which amounted to nearly $200 million in equity on March 17 and 18.

They said exporters and some banks were also seen selling dollars after the American currency weakened against the basket of currencies in global markets.

 

The dollar is expected to fall further following the US Federal Reserve's unexpected announcement that it will spend $1 trillion to buy government bonds and mortgage-backed securities.