The Rupee closed at a five-week high on Tuesday, buoyed by a host of factors, including expectations the US Fed may go slow on rate hikes, falling crude oil prices and banks selling Dollars on behalf of foreign portfolio investors and exporters
The Indian unit (INR) closed at 81.7850 per Dollar (USD), appreciating 58 paise over the previous close of 82.3650.
The Rupee opened stronger at 82.20 per Dollar vis-a-vis previous close. Intraday, INR tested a high and low of 81.72 and 82.26, respectively.
According to forex dealers, one of the reasons the Rupee strengthened was due to Dollar inflows on account of FPIs plans to invest in primary debt issuances as well as possible mega follow-on public offer by Adani Enterprises.
Anindya Banerjee, Vice President, Kotak Securities said, “Corporate inflows triggered the sharp decline (in USD-INR). Once prices drifted below 82.10, dealer stops were hit and prices accelerated downward.”
”Over the near term, USD-INR can fall further, to catch up with the other USD peers. We expect a broad range of 81.00 and 82.20 on spot.”
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