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With foreign banks and exporters resorting to dollar selling, the rupee continues to trade firm at 64.26 against the greenback in the afternoon session.
Treasury executives said banks and exporters have sold dollars on sustained capital flows. Plus, some easing of tension over the crisis in Syria over the weekend and a slew of steps announced last week to attract more foreign exchange are exerting a positive influence on market sentiment.
The rupee opened at 64.48 to a dollar in morning trade as against last weekend’s level of 65.25 a dollar.
Banks and exporters preferred to reduce their dollar position on expectation of more foreign capital inflows into the equity market. The benchmark Sensex rose by more than 500 points in late morning trade.
In the global market, the US dollar moved sideways in early trade, with the market holding on to expectations for a reduction of Federal Reserve stimulus next week, while the odds of an attack on Syria appeared to decrease.
