Rupee posts big gain

The rupee shot up by 92 paise,the biggest rise in the year 2009,to close at a three-week high of 50.38/39 against the greenback following heavy dollar sell-off amid expectations of increased capital inflows. The domestic currency opened sharply up at 51.04/05 a dollar from the previous close of 51.30/31 due to firm equity markets.

It rallied further to settle the day at 50.38/39 per dollar,a sharp rise of 1.79 per cent. On Wednesday,it was up by 19 paise. The rupee moved in a range of 51.10 and 50.30.

Heavy dollar-selling by banks and exporters on expectations of a further fall due to a surprise announcement by the US Federal Reserve yesterday that it would pump in another USD one trillion into the ailing economy,boosted rupee sentiment,a dealer said.

Expectations of more capital inflows after two days of net buying by foreign funds and a weak dollar overseas also helped the rupee rally for the second straight day,he added.