The Indian rupee climbed towards a recent nine-year high on Monday, as traders adjusted positions in anticipation of a surge in portfolio-related inflows, with gains limited only by concerns over central bank intervention.
The rupee ended at 40.79/80 per dollar, strengthening smartly from 41.1150/1250 on Friday when it hit an intraday trough of 41.25 - its lowest since May 11. "Large flows are expected to start coming in this week, and the market is starting to go short (dollars) again," said the chief dealer with a private bank.
Indian property developer DLF Ltd said the institutional portion of its $2.4 billion initial public offering, the country's biggest, had been fully subscribed at its opening on Monday, with traders expecting significant foreign investment flows into the issue.