Wednesday, September 13 2006 12:23 Hrs (IST) - World Time -

Mumbai: The rupee today (Sept 13, 2006) rallied smartly after a steady start against the US currency largely due to heavy dollar sales by corporates, buoyed partly by a strong trend in equity markets.

In fairly active trade at the Interbank Foreign Exchange (forex) market, the Indian unit opened steady at Rs 46.27/28 per dollar from yesterday's close of 46.2750/2850 per dollar and later shot up to Rs 46.17/18 a dollar in late morning deals.

Heavy corporate dollar sales and absence of any dollar demand from oil companies triggered a sharp rupee rally, a leading forex dealer said.

Global oil prices were at a low of US$ 63.79 a barrel in Asian trade this morning.

The Bombay Stock Exchange key index spurted by 164 points during morning trading, providing support the strengthening rupee, dealers said.

Meanwhile, the dollar was higher against the Yen in overseas markets yesterday.