The rupee was trading strong by 91 paise at 64.33 against the dollar at 3.41 p.m. local time on persisent selling of dollar by banks and exporters due to higher capital inflows. The domestic unit gained 82 paise to 64.42 per dollar in the opening trade against Friday's close of 65.24 on higher capital inflows and announcement of possible steps to reduce the fuel import bill. According to dealers, the improvement of sentiment from reversal of capital-control measures and positive domestic equity markets have propped up the domestic unit. Capital-control measures The RBI had partially rolled back some of the capital flow curbs imposed in August. Relaxing the limit on outward investments, the apex bank said a company will be allowed to invest up to 400 per cent (from 100 per cent earlier) of its networth provided it has raised the funds through external commercial borrowings (ECBs). The central bank also opened a special concessional window for swapping foreign currency non-resident banks (FCNR (B)) deposits for three years at a fixed rate of 3.5 per cent per annum.

Source