Mumbai: The rupee on Tuesday turned strong and showed smart appreciation against the US dollar, deriving strength from weak overseas advices and sustained FII inflows into the soaring stock market.
In quietly active trade at the Interbank Foreign Exchange (forex) market in Mumbai, the rupee opened firm at Rs 44.46/48 per dollar against overnight close of Rs 44.51/52 a dollar and was quoted slightly changed at Rs 44.47/48 per dollar in Tuesday morning dealings.
The dollar lost ground versus the euro and yen on Monday ahead of a report on the fourth quarter US current account deficit, which is expected to show a large increase to $219.5 billion from $195.8 billion in the third quarter.
The weakness of dollar was also attributed to the Treasury International Capital System flow data to be released on Wednasday, which could also foster fears about imbalances in the US external accounts.
Dealers said the activity was limited and no fresh buying or selling seen during early trade.
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