Rupee Ends 27 Paise Stronger Against Dollar As RBI Curbs Dollar Demand
At the interbank foreign exchange market, the rupee opened at 92.93 and gained further to trade at 92.86 against the greenback in early deals, up 28 paise from the previous closing level.
Mumbai: The Indian rupee ended 27 paise stronger on Friday at 92.92 against the US dollar on reports that the Reserve Bank of India (RBI) has asked state-run oil marketing companies (OMCs) to refrain from buying dollars from the spot market and instead avail a credit line through SBI.
Sentiments also turned positive as US President Donald Trump said that the US-Iran war should end pretty soon. The US and Iran are likely to restart talks this weekend. Israel and Lebanon have agreed to a 10-day ceasefire.
The rupee opened at 92.94 against the dollar. It made a high of 92.98 and a low of 92.65 before closing at 92.92 compared to its previous close of 93.19, an appreciation of 27 paise. However, intraday the rupee appreciated by 54 paise even as most emerging market currencies remained under pressure against the dollar. On a monthly basis, the rupee has gained around 3 per cent, in sharp contrast to several emerging market currencies that have declined by the same proportion.
"With RBI announcing further measures taking demand for dollars out of the OMCs and arbitrageurs, the rupee gained to 92.65 levels. We expect the rupee to appreciate to 92 levels slowly as the big chunk of dollar demand is out of the market (OMCs and arbitrageurs), while FPIs have turned dollar sellers in the market as stocks move up," said Anil Bhansali, head of treasury at Finrex Trading.
