Rupee rallies to 9-year high

8220;Exporters got panicky and were selling their dollars throughout the day, and inflows are expected to be robust as is evident from the soaring stock markets,8221; said a currency trader, adding, 8220;I expect the rupee to break past the 40 per dollar mark before the end of this month.8221;

Tuesday8217;s cuts in US interest rates raised India8217;s interest rate premium over the US to 300 basis points, which traders said would attract more capital inflows and add to the rupee8217;s momentum. But those inflows complicate policy decisions for the Reserve Bank of India RBI, which has been intervening as the rupee rose this month and stepped in again as the currency neared its highs.