Rupee climbs to 3-month high of 48.68 against dollar

Mumbai : The Indian rupee climbed to a three-month high of 48.68 against the dollar on the back of continued inflows of funds by overseas investors into the Indian markets.

The partially convertible rupee rose to a high of 48.68 against a dollar against its Thursday close of 49.15.

The Reserve Bank of India hiked reference rate of dollar to 48.96 Friday from 49.12 in the previous day. The reference rate of euro was also hiked to 64.39 Friday against 64.74 in the previous day.

After losing 16 percent of its value against the US dollar, the Indian currency has recouped over half of that because of an intervention in the currency market by the RBI and heavy inflow of funds from the foreign investors into the Indian equities markets.

Foreign institutional investors have pumped in $2.6 billion into Indian equities markets since the beginning of the year and also $3.2 billion in debt, according to the Securities and Exchange Board of India data.

Foreign institutional investors bought net equities worth $434.55 million Friday.

This has led to a strong rally in the Indian equities with the benchmark Sensex rising for the fifth straight week.

The Sensex closed 0.99 percent higher at 17,604.96 points Friday.

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