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Our Bureau

Mumbai, Dec. 28

The rupee, which has been gaining against the US dollar in the past few days, touched a 10-months high on Thursday. Dealers said the usual month-end or quarter-end dollar buying seems to be missing. This, along with genuine dollar inflow, either in the form of FDI or capital inflows is probably helping the rupee gain, said dealers.

The rupee opened at 44.26 and touched a low of 44.38 as oil companies and corporates bought dollars. However, in the second half of trade, the rupee gained to end at 44.25/26 — the level seen last in March this year — against yesterday's close of 44.40/42. "The rupee is going strong irrespective of what is happening in the international market. We thought with the call rate crossing 12 per cent, the RBI may intervene to stem the rupee's rise. But that seems to have been a temporary move, when the rupee fell to 44.38.

There is genuine dollar inflow. But we have no clue why," said the chief forex dealer with a private bank. Forward premia eased off a little with the six-month premium closing at 3.76 per cent (3.80 per cent) and the one-year closing at 3.03 per cent (3.05 per cent) "In the near term, nobody wants to sell. People are in wait and watch mode and are waiting to see the RBI's move," the dealer said.

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