Rupee Trading

The spot rupee today shot up by 20 paise to touch 40.28/29 per dollar, near its nine-year high, on expectations of more capital inflows on the back of the interest rate cut by the US Federal Reserve last night and a sharp rally in equity markets, its highest since May 1998. Dollar buying by state-run banks and a local company trimmed some gains in the mid-morning trade.
The rupee was trading around 40.24 per dollar in early noon deals.
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.