Monday, July 31 2006 12:52 Hrs (IST) - World Time -

Mumbai: The rupee strengthened against the US currency, surging by over 19 paise to Rs.46.49/50 per dollar, driven-up by a retreating dollar overseas amidst healthy trade and FIIs inflows.

"In an upbeat mood at the Interbank Foreign Exchange (FOREX) market this morning, the rupee open distinctly firm at Rs 46.55/56 per dollar compared to last Friday's close of Rs 46.68/69 and shot-up further to Rs 46.49/50 per dollar, despite firm crude oil prices and residual month-end dollar demand," dealers said.

The Rupee rallied by over 8 paise last week.

The distinctly weak dollar overseas fuelled a smart rupee early rally, partially held by strong trade and FIIs inflows inspite of firm crude oil prices at US$ 73.16 a barrel.

Foreign Institutional Investors (FIIs) pumped in US$ 100.2 million into the equity market on July 27, taking the total inflows in first four trading day of last week to US$208.60 million. million into Equity market on July 26 and pumped-in a whopping USD 108.40 million in the first three trading days of the week.

Traders expect the rupee to remain firm even as residual month-end dollar demand may prevent further sharp gains.

Turning to cross currency trade, the euro was quoted at Rs 59.35/38, pound sterling at Rs 86.73/75 and a japanese yen (100) at Rs 40.63/65.