Mumbai: The Rupee continued to strengthen against the US currency early today (Dec 16, 2004), on the back of sustained heavy foreign fund inflows and trade remittances amidst lingering weak Dollar overseas.

Despite a rise in global oil prices, the Rupee opened distinctly firm at 43.80/83 per Dollar and forged ahead to 43.8150/83 per Dollar, in late morning deals-- a whopping 22 paise gain from Wednesday's close of 44.03/04 per Dollar.

Persistent heavy Dollar supplies from export proceeds and FII inflows continue to drive the Rupee higher everyday, even as global oil prices surged to over $44 a barrel due to supply worries, dealer said.

New York sweet crude oil for delivery in January spurted to $44.54 a barrel before settling at $44.44 a barrel in Asian trade due to heavy winter demand amidst lower US inventories.

The Rupee has appreciated by a massive 96 paise this week, buoyed by robust trade and foreign fund inflows, it had touched an eight months closing peak of 43.64/65 on December 6.

The current strong upper Rupee rally is driven mainly by FIIs and it is expected to continue in the near future.

However, FII inflows may slow-down due to the year end factor even as Economic fundamental remains strong to make India an attractive destination, an another dealer said.

Turning to cross currency trades, the Euro was quoted at Rs 58.74/76, Pound Sterling at Rs 85.03/05 and the Japanese Yen (100) at Rs 41.98/42.02.