Mumbai : The rupee surged by a massive 78 paise to end at a nearly one-and-a-half year high of 65.82 against the US dollar on frantic unwinding of the American currency following BJP’s emphatic victory in Uttar Pradesh.
Forex market sentiment soared on hopes that BJP’s stellar show in state polls would pave the way for the Modi government to focus on key reform measures. The home currency resumed on a strong footing at 66.20 from last Friday’s closing value of 66.60 at the Interbank Foreign Exchange (forex) market on heavy dollar unwinding from speculative traders and exporters tracking weekend developments. Maintaining its bullish momentum against the dollar, the rupee hit a fresh intra-day high of 65.76 in late afternoon deals before ending at 65.82, showing a solid gain of 78 paise, or 1.17 per cent.
This is the highest closing of the rupee since November 6, 2015 when it had ended at 65.76. Meanwhile, the RBI fixed the reference rate for the dollar at 66.1800 and for the euro at 70.4354. The much-anticipated turnaround on the economic front has opened up a barrage of foreign capital fund flows into India.
