The Indian rupee gained by 42 paise to trade at 50.95 to US dollar on the Interbank Foreign Exchange market on Tuesday. This level of the Indian currency was last seen on 18 November 2011. The surge in the currency was supported by continued foreign fund inflows.
Dealers said consistent dollar inflows and euro's gains against the US currency overseas, mainly supported the rupee.
The rupee had gained 15 paise to close at nearly one-and-a-half month high of 51.37/38 against the dollar yesterday on the back of late recovery in equities and mild dollar selling.
In 2012 so far, foreign institutional investors have reported a net inflow of $ 543m in Indian equities. For the whole of 2011, FIIs reported a net outflow of $ 348m. World Bank data suggests that India would be the biggest recipients of overseas remittances at $ 58bn in 2011.
In 2011, the Indian currency fell 22 per cent and below Rs 54 to the US dollar. It was among the worst performing currencies in Asia.
