Thursday, April 27 2006 11:30 Hrs (IST) - World Time -

Mumbai: The rupee today (Apr 27, 2006) rallied against the US currency on exporter dollar sales amid a retreating dollar overseas, helped partly by positive sentiments following a renewed boom in the stock market.

Shrugging off firm global crude oil prices, rupee posted a recovery at the Interbank Foreign Exchange market here this morning and was quoted at Rs 45.05/06 per dollar, sharply higher from Wednesday's close of Rs 45.11/12, dealer said.

Rupee opened on a positive note at Rs 45.09/10 per dollar, reflecting the dollar sustained slide against major global rivals, mainly the Euro.

The Indian currency is linked to the US dollar in the basket of currencies so that any sharp fall/rise impacts the rupee.

Discounting firm crude oil prices at US$ 71.90 a barrel, the rupee made a sharp turnaround early today on the back of the tumbling dollar overseas and trade inflows, a forex dealer said.

Market sentiments got the boost following a fresh spurt in share prices at the local bourses, he added.

The Nifty at the National Stock Exchange (NSE) hit all time highs of 3595.70, within 10 minutes of resumption of trade, crossing the previous peak of 3592.70. The BSE sensex shot-up over 134 points to 12073.01.

Although, rupee staged a pull-back rally early today,customary month-end dollar demand and firm crude oil prices could exert renewed pressure on the rupee, bankers said.

In cross currency trade, the Euro was quoted at Rs 56.09/56.11, Pound Sterling at Rs 80.42/44 and a Japanese Yen (100) at Rs 39.24/26.