The Indian rupee posted its best close in a month for a second day on Friday as a watchful central bank loosened its grip slightly towards the close, letting the local currency ride up a little on strong capital inflows. The rupee ended at 43.5600/5650 per dollar, a gain of 0.07 percent from Thursday's 43.5850/5950 close and the best finish since 43.50/51 on February 7. The local currency also notched up its best one-week gain in five weeks, appreciating 0.45 percent over five straight days.
"State-run banks were buying for most of the day, both for customers and the central bank, and only after they let go did it end at a high of 43.5650," a trader at a state-run bank said. The central bank has reined in the rupee since it scaled a five-year high of 43.30 in early February in order to keep local exports competitive and growing nearly as fast as the imports consumed by the liberalising and rapidly expanding economy.
Comments
Comments are closed.