Rupee extends gains; trades at 7-month high
The Indian rupee extended its gains after a flat start on Friday on the back foreign fund inflows and strong opening for domestic market.
It is trading higher by 14 paise at 69.21 per US dollar, a highest level since August 10, 2018.
On Thursday, it closed 20 paise higher at 69.35 against the US dollar.
Rupee strengthens in yesterday’s session and rose to the highest level in seven months despite the RBI announcement to inject USD 5 billion into the system, said Motilal Oswal in its report.
RBI announced inject long-term liquidity worth USD 5 billion into the system through dollar-rupee swap arrangement with banks for three years. The main reason for the huge appreciation in Rupee is the strong fund inflows that are giving huge support to the prices.
Most market participants are positioning themselves for more inflows ahead of the general elections scheduled this year. Volatility for the rupee is expected to remain higher as the dollar too is starting to strengthen against its major crosses.
Today, USD-INR pair is expected to quote in the range of 69.80 and 70.20, it added.