Rupee scales nine-year peak to Rs 40.21 per dollar

The rupee today rose 0.7% to Rs 40.21 per dollar which is the highest in more than nine years. Before the Sensex rose to record today with more than 654 points gain , stoking optimism that the overseas funds will buy more local stocks.

Based on the optimism and the Global funds coming heavily into the market Rupee ended Rs 40.21 per dollar, its highest since May 1998.

The US Federal Reserve lowered on Tuesday the benchmark federal funds target rate by 50 basis points to 4.75 per cent from 5.25 per cent. It also cut the discount rate it charges for direct loans to banks by a half-point to 5.25 per cent.