On Friday, the rupee rose to its highest level to hit 159.09 against the dollar in more than seven months, supported by heavy inflows and lower oil prices, dealers said.
The rupee closed at 159.09 / dollar in the interbank sector, its highest level since March 24, 2020. It closed on Thursday at 159.46. During the day, the local currency gained 37 paisas.
It appreciated 40 paisas against the dollar on the open market as well and ended at 159.30, compared to the previous closing of 159.70.
“We have seen dollar inflows entering the market from export proceeds, international financial institutions and remittances. Higher foreign exchange reserves, a decline in oil prices, a likely rise in exports, and a dollar fall against major currencies have all contributed to the strength of the rupee,” a currency dealer said.
The supply of dollars is more than the demand at present. In expectation of a further decline in the exchange rate, exporters continued to sell dollars forward.
Another dealer said, “The falling trend of crude prices may bode well for the import bill of the nation, as well as forex reserves and the rupee.”