Rupee flares up 42 paise Vs dlr to 16-month high

MUMBAI: The rupee on Monday rallied by 42 paise to close at a 16-month high of 45.34 against the US dollar on heavy selling of the American currency by exporters and banks amid flat local equity markets.

Forex dealers attributed the sharp rally in the rupee to subdued dollar overseas against its major rivals. The dollar sentiment turned weak against euro and yen after poor US job data ruled out hike in interest rates.

In fairly active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply higher at 45.40/41 a dollar from its previous close of 45.75/76.

Later, it hovered in the range of 45.48-45.28 before closing at 45.33/34, a level not seen since September 10, 2008.

Meanwhile, after resuming higher the Indian benchmark Sensex today ended barely flat, down by a mere 13.58 points or 0.08 per cent. But Asian indices displayed a firm trend at the close today.

Global crude oil prices were trading above $83 a barrel in London today.