Rupee rallies past 40.40 level in morning trade

MUMBAI: The rupee rallied further against the US currency and breached 40.40 level during morning trading, buoyed by dollar selling by exporters and banks coupled with sliding dollar in overseas markets.
    
In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed higher at 40.40/42 per dollar against Friday's close of 40.42/4250 per dollar and later rose to 40.37/38 a dollar in late morning deals.
    
The rupee strengthened further by dollar selling by banks as well as exporters, forex dealers said. The rupee also drew support from weakening dollar in international markets and heavy capital inflows.
    
The dollar declined to a record low versus euro for the fourth consecutive day on Friday as weaker-than-expected US retail sales data made matters worse for the battered greenback.
    
The rupee's surge also was attributed to the absence of the central bank, which was earlier active in the exchange market to prevent any rally in Indian currency.