The rupee rose for a second straight session on Thursday to its highest finish in one week, helped by robust foreign fund inflows as the stock market continued to erase some of its recent steep losses.
Traders said the central bank, which last week announced it would raise reserve requirements for banks in a monetary tightening measure, did not intervene on Thursday.
The rupee pulled away from recent three-week lows to end at 44.65/66 per dollar, 0.3 percent higher than the previous close of 44.80/81 and its strongest close since December 7. "The foreign inflows were steady, maybe its for the Cairn offering, and the good part was that they (state-run banks) were not there protecting any level," said a forex dealer at a large Indian company. "The key to further gains is of course if the central bank wants it or not."
Comments
Comments are closed.