The Indian rupee today surged by 27 paise to close at 14-month high of 46.07/08 against the US dollar on heavy dollar selling by exporters amid sustained capital inflows.
Forex dealers said dollar selling by exporters on expectations of fall in the American currency in overseas markets and a sustained capital inflows after a rally in equities early this week boosted the Indian rupee.
The dollar was quoting nearly 16-month low against the Euro and was also down against major currencies abroad.
Foreign Institutional Investors pumped in over USD 646 million on first two days of the week while injecting nearly USD 16.0 billion in the year 2009 so far.
At the Interbank Foreign Exchange (Forex) the domestic unit touched the day's low of 46.30 before rebounding sharply to settle at 46.07/08, a closing high of more than 14 months.
The Indian benchmark sensex which was up by over 191 points in afternoon trade, ended just up by nearly 16 points.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.22 and for the euro at Rs 69.75.
Rupee premiums on the forward dollar continued to rule firm on sustained paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in May ended up at 61-63 paise from 58-1/2-59-1/2 paise on Wednesday and far-forwards maturing in November also finished higher at 121-1/2-122-1/2 paise from 118-119 paise previously.
In cross-currency trade, the domestic currency recovered against the pound sterling and the euro while strengthening further against the Japanese yen.
The rupee recouped against the pound to end at Rs 76.70/72 per pound from Wednesday's close of Rs 77.20/22 and firmed up against the Euro to end at Rs 69.68/70 per euro from Rs 69.90/92 previously.
The rupee, however, hardened further against the Japanese yen to Rs 52.45/47 per 100 yen from its overnight close of Rs 53.11/13.
Source : outlookindia.com