The Indian rupee recorded its highest close in nine years on Wednesday, as traders brushed off concerns over central bank intervention, and built fresh positions in the unit on expectations its rally would continue.
The partially convertible rupee ended at 40.7800/7950 per dollar, its strongest close since May 1998, according to Reuters data, and gaining smartly from Tuesday's 40.9550/9700.
The rupee came within striking distance of a nine-year peak of 40.53 hit early last week, and traders said the local unit was poised to test the milestone in the next session. "After a few rangey days, the market seems ready to take dollar-rupee lower," said the chief dealer of a private bank.
"Mohan's comments today were interpreted as largely benign, which gave the market an impetus," the dealer said, referring to the Reserve Bank of India's deputy governor Rakesh Mohan.
Comments
Comments are closed.