Rupee at 13-week high of 48.74 to US dollar
“India should allow only 2008 participants in new sale,” he said at a press conference on Monday.
The Indian rupee rose 9 paise in early morning trade at Rs 48.60 to US dollar on the Interbank Foreign Exchange on increased foreign fund inflows.
Dealers said that increased foreign funds inflows and euro's gains against the US currency in the overseas market supported the rupee. The rupee had closed 46 paise higher at over three-month high of 48.69/70 against the US currency last Friday on continued dollar selling by exporters.
The Indian currency shed those early gains after a press report said that Reserve Bank of India had eased restrictions on speculative overnight open forex positions of select banks. It traded at Rs 48.74 to US dollar.
These restrictions were imposed due to a sharp fall in the currency’s value in November 2011.
Since the beginning of this year, foreign institutional investors have put $ 6 billion in Indian debt and equity. Sebi data reveals that over the first three trading days in February 2012, FIIs put close to $ 1 billion in Indian equities. This has resulted in benchmark indices like BSE Sensex and NSE Nifty gaining close to 15 per cent.
The rupee has also appreciated 7 to 8 per cent so far in 2012. Domestic mutual funds have been net sellers to the tune of $1.4 billion. The money has been put into underperforming sectors like metals and capital goods.