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Journalism of Courage
The rupee extended its gains against the US dollar by four-and-a-half paise to close at a fresh 18-1/2-month high at 47.5550/5650 on unabated dollar inflows and absence of any intervention by state-run banks at the interbank foreign exchange (forex) market.
Opening flat at 47.60/61, the rupee crossed the psychological 47.60-barrier immediately without any resistance and moved northwards amid strong export dollar inflows ahead of the fiscal year-end and feeble import demand. The rupee closed at 47.5550/5650, gaining four-and-a-half paise from 47.60/61 of its Tuesday’s close.
The market continued to witness strong dollar inflows from exporters and non-resident Indians while importers preferred to stay away, keepinan eye on war developments and greenback’s overseas movements, a forex dealer said.
As corporates were in the process of preparing their balance sheets ahead of the fiscal-year end, the export remittancees continued to be stronger. Further, the absence of any indirect intervention by RBI, also helped the rupee to maintain its firm trend, a treasury head at a private brokerage firm said. The forward dollar premium, tracking the strengthening spot rupee, moved down further on steady export receivings. The six-month and one-year annualised premia closed lower at 3.42 per cent and 3.27 per cent respectively.
