The rupee rose to its highest in more than 15 months as demand was triggered by the dollar’s fall on weak US payrolls data and expectations of steady rates in the United States. The partially convertible rupee ended at 45.34/35 per dollar, off an early high of 45.2850, its strongest since September 2008, but still 0.90 % above Friday’s close of 45.75/76. The dollar fell broadly after data on Friday showed US employers cut 85,000 jobs last month and St Louis Federal Reserve Bank president James Bullard said rates may remain low for quite some time. The index of the dollar against six major units was down 0.7%. Foreign fund investments into local shares are a key driver for the rupee. Last year inflows of more than $17 billion helped the rupee climb more than 12% from a record low of 52.2 in March, and it rose 4.7% on the year as a whole. So far in 2010, foreigners have bought about $800 million worth of Indian shares and the rupee is up about 2.6%. One-month offshore non-deliverable forwards contracts were quoted at 45.27/37, little changed from the onshore spot rate.
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