Rupee rises to yet another 9-year high

The rupee on Monday touched a fresh nine-year high and reacted slightly downwards to close at 40.87/ 89 against the US currency on hectic short covering by banks at the fag end. In high volatility at the Inter-Bank Foreign Exchange Forex market, the Indian unit resumed remarkably higher at 40.68/70 a dollar and later shot up to a new nine-year high of 40.53 a dollar on hectic dollar selling and lack of any intervention by the RBI.

However, dollar short coverings in the last half hour weighed down heavily on the rupee and it fell sharply to close at 40.87/89 a dollar, slightly lower than last Friday8217;s close of 40.8550/ 8650 per dollar. Previously, the rupee had touched a near-nine high of 40.57 in intra-day trade on April 23.

The Bombay Stock Exchange8217;s BSE benchmark Sensitive Index Sensex closed 55 points down on Monday. There was selling in shares of software firms on concerns that the rising rupee would hurt export revenues.