The rupee hit a new 44-month closing high against the US currency at Rs 44.7450/7550 per dollar on Wednesday, as sustained heavy trade and foreign investment inflows gave a further push to the bullish momentum at the interbank foreign exchange market.

The rupee gained by yet another 12 paise from Thursday's near 44-month closing peak of Rs 44.8650/8750 after inflows from foreign funds, chasing $3 billion worth of recent public offerings of shares in state-run companies, drove the rupee a whisker away from Rs 44.73/74 struck at close of business on July 24, 2000, a forex dealer said.

The domestic unit spurted by over 21 paise on Thursday and has appreciated by nearly 1.6 per cent in the current calendar year so far, following a sharp 5.32 rise in 2003.

Buoyed by robust trade and foreign investment inflows in the absence of central bank intervention, the rupee has shown a sustained sharp appreciation amidst negligible dollar demand from corporates and importers, dealers said.

Foreign institutional investors had placed large bids in recent public offerings, particularly huge energy companies, the proceeds of which was coming into the country, they added.

The mega public issue of ONGC worth over Rs 10,000 crore (Rs 100 billion) was oversubscribed several times, mainly by foreign institutional investors and close to $1 billion inflows were expected over the next few days.

The rupee is set to gain more in the next few days on strong inflows from FIIs who have subscribed to a slew of public offerings by state-run companies.