The rupee soared 42 paise to 66.18 against the dollar in early trade on increased selling of the US currency by exporters and banks amid higher foreign inflows following BJP’s resounding win in Uttar Pradesh and positive IIP numbers.
Forex dealers said that a weak dollar against other currencies overseas and buoyant domestic stock markets with the NSE Nifty hitting a new high of 9,122.75 points supported the rupee momentum.
Furthermore, industrial production expanding by 2.7 per cent in January too supported the rupee, they added.
The Index of Industrial Production (IIP) rose to 2.7 per cent in January this year, with all three tracked sectors of mining, electricity and manufacturing registering positive growth.
In contrast, the IIP had contracted by 1.6 per cent in January 2016. It stood at 0.1 per cent in December last year.
On Friday, the rupee had gained 11 paise to close at a fresh 4-month high of 66.60 against the dollar on renewed selling of the US currency by exporters and banks.
Forex market remained closed yesterday on account of Holi.
Meanwhile, the benchmark BSE Sensex rose 615.70 points or 2.12 per cent to 29,561.93 in opening trade.
The NSE Nifty too spurted 188.20 points to trade at an all-time high of 9,122.75, surpassing its previous high of over 9,119 points on March 4, 2015.
Source: Thehindubusinessline.com
