Rupee continues north-bound journey against dollar

MUMBAI: Rupee continued its northward journey against the US dollar for the sixth successive day on Wednesday on the back of sustained capital inflows.

In active trade at the Interbank Foreign Exchange (For ex) market, the Indian unit opened firm at 40.51/52 per dollar and improved further to quote at 40.4850/4950, higher from Tuesday's close of 40.56/57.

Sharp rally in the equity markets, where the benchmark Sensex rose by 119 points to touch 15,661.44, mainly boosted rupee sentiment, forex dealers said.

The domestic currency also got support on expectation of increased capital inflows on anticipation of cut in the interest rates by the US Federal Reserve next week, they added.

Traders also expect nearly $500/700 million of inflows through the Initial Public Offer (IPO) by a state-run PowerGrid Corporation of India, which opened on September 10.

Despite spiralling global crude oil prices near their all-time high, there was no dollar demand from oil refinery companies.

Foreign Institutional Investors (FIIs) also pumped in nearly $670 million in the current month so far, helping rupee's surge.