The Indian rupee rose to its highest in nearly two months on Thursday as exporters dumped dollars on a view that improving growth and robust foreign inflows would see the local unit strengthen in coming months. The partially convertible rupee ended at 47.74/75 per dollar, off an intraday high of 47.70, its highest since August 10, and 0.8 percent stronger than Tuesday's close of 48.10/11.
The market was closed on Wednesday for the fiscal half-year book closing, and will be closed on Friday for a holiday. "The rupee is clearly on an upward trajectory and exporters want to sell dollars before this rise accelerates," said a senior trader with a foreign bank. One-month offshore non-deliverable forward contracts were quoting at 47.79/89, close to the onshore spot rate. In the currency futures market, the most traded near-term contracts were at 47.8550 from 48.10 on Tuesday.