Rupee ends at new 20-month high against US dollar

Despite consistent dollar-buying intervention by the Reserve Bank of India through public sector banks, the rupee ended at a new over 20-month high of Rs 47.2450/2500 per dollar on Thursday, the fourth straight session rally, backed by sustained healthy trade and corporate inflows. Unabated dollar inflows from exporters, foreign funds and expatriates pushed up the rupee by yet another paise from Wednesday’s close of Rs 47.2550/2600 in spite of sporadic dollar demand from state-run banks, dealers said. State-run banks normally buy dollars at the behest of the RBI to contain the rupee’s rise in a bid to protect exporters’ interest.

During the current week the rupee has appreciated by 11 paise, propelled by a continous flow of dollars from export proceeds and inward remittance.