The rupee on Wednesday vaulted to seven months closing high of Rs 44.45/46 per dollar, helped by sustained heavy foreign fund inflows in the absence of central bank intervention.
Breaching the crucial 44.50-dollar barrier, the rupee crossed the 44.50/52 per dollar mark logged at the close of trade on April 30 and would now seek to pierce through the next resistance of 44.39/41 a dollar struck at the end of business on April 29, a forex dealer said.
The rupee has appreciated by a whopping 61 paise in the last four consecutive sessions, buoyed by robust foreign capital and trade inflows.
Strong FII inflows coupled with trade remittances on the back of a sliding dollar overseas drove the rupee to multi-month peaks with the Reserve Bank of India being a mute spectator to the stupendous rising trend, another dealer said.
FIIs investments crossed $7 billion mark in the current calendar year so far, shading last year's record of $6.6 billion - and there is still a month to go.
With the FIIs being a primary driver for the current sharp rupee rally, analysts believe that as long as the flow of money continues, the forex market can be expected to be volatile.
Global fund managers focus on India has been heightened by prospects of robust growth, a large domestic market and strong economic fundamentals.
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