Rupee up by 15 paise against dollar on heavy FII inflow

Mumbai, March 31: The rupee today rallied for the third straight session to end higher by 15 paise at nearly a four-and-a-half month high of 44.59/60 against the US currency on frantic buying by foreign funds in booming domestic equities amid a weak dollar overseas.

Dealers said that sustained sale of dollars by exporters and some banks on the last day of the financial year 2010-11 also aided the rupee rise.

The Bombay Stock Exchange benchmark Sensex rallied for the eighth day in a row today – the longest stretch since last April – gaining 155 points at 19,445.22, following frenzied FII buying amid firm global cues and decline in food inflation.

Foreign Institutional Investors (FIIs) picked up shares worth over USD 1.2 billion in seven days since March 22.

The food inflation fell to 9.5 per cent for the week ended March 19, from 10.