The Indian rupee today rose to one- year high of 46.13 against the $, which plummeted to a new low against its major rivals, on anticipation of foreign funds pouring into strong domestic equity markets.
In brisk trading at the Interbank Foreign Exchange (Forex) market, the domestic currency hit a high of 46.02, the level not seen since September 24, 2008.
However, it closed at came down to settle at 46.13, up 35 paise from its last close.
Foreign exchange dealers said weak dollar overseas compelled exporters and corporates to sell the US currency, anticipating further fall in the American unit.
Dollar fell to 14-month low against euro on declining confidence in the US economic recovery.While some market analysts attributed the American units losses to waning demand for "safe-haven" currencies, others blamed it on disappointment that the world's largest economy is not recovering as quickly as many had hoped.
Hopes of increased foreign fund inflows into surging equities too supported the rupee. After pulling out nearly $12 billion in the year 2008, Foreign Institutional Investors (FIIs) bought shares nearly $ 13 billion in 2009 so far.
After gaining 384 points on Monday, the index today ended up by 204.44 points or 1.20 per cent on firm Asian indices.
