The Indian rupee rose on Thursday, buoyed by equity-related inflows as the stock market reached a record high, but gains were stemmed as oil importers bought dollars to meet monthly import payments, traders said. The partially convertible rupee ended at 44.247/257 per dollar, inching up from Wednesday's close of 44.282/292.
"The rupee traded in a pretty narrow range today. The question is: what happens once the routine demand for dollars from oil companies ends," said a dealer with a private bank. "The rupee is likely to keep strengthening and my sense is the central bank will let it grind up to 44.00 next month."
The forex market will be closed on Friday for a holiday. Capital inflows into stocks have helped the rupee appreciate about 6.5 percent since it hit a three-year low in July.
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