The Indian rupee resumed highly at 54.11 per dollar till the last weekend at the Inter Bank FOREX (Foreign Exchange) market. It is moving in a range from 54.01 to 54.15.
The FOREX dealer said that the banks and exporters are preferring to reduce their dollar position due to the weakness of the American currency in the overseas market.
In the NewYork market, the Euro rose against the dollar on last Friday giving a shake. Meanwhile, the Indian benchmark share index rose by 107 points.
While moving in the Indian equity market, rupee trimmed its initial gain at 19 paise against dollar, The main reasons for boosting up the rupee value is weakness of dollar in the overseas market and persistent foreign capital inflows.
Traders are also looking for the week's Federal Reserve meeting for clues on continuation of its policy to purchase long-date securities.
The Rupee resumed higher up to 54.42 in the previous level against the closing level of 54.68 FOREX market and moved up to further 54.31.
Persistent foreign capital and equity market are supporting the rupee sentiment. In overseas market the dollar gains strongly against the other currencies.
The rupee strengthened by 19 paise against the American dollars by selling the persistent dollars of banks and exporters. In view of capital inflows from foreign funds in to the equity market.