The Indian rupee rose to a 43-1/2 month closing high on Friday, as the central bank refrained from the heavy dollar purchases it had made in recent months to mop up robust foreign investment and trade inflows, dealers said.
The rupee ended at 45.1575/1625 per dollar, firmer than the previous close of 45.2375/2425. It gained nearly 0.22 percent during the week and ended firmer than the key psychological level of 45.23 for the first time since March 10.
The rupee last ended firmer on August 1, 2000 at 45.1500/1600.
"Dollar inflows were quite good but unlike most other days, the central bank did not intervene," said a dealer at a state-run bank.
The central bank had kept the rupee, which is only partly convertible, on a tight leash and capped gains at around 45.23 in recent months through dollar purchases by state-run banks.
Rupee premiums on the forward dollar ended firmer on hedging by importers. The six-month forward ended at an annualised 0.50 percent, up from the previous close of 0.46 percent.
Comments
Comments are closed.