Rupee rose to a six-month high against the Dollar

The Rupee on Friday rose to a six-month high against Dollar and also recorded it’s biggest gain in about 20 months. During the day, the Indian currency strengthened 38 paise against the green back to close at 73.40 to a Dollar with a weekly gain of 2%, it’s biggest since December 2018.

For weeks Rupee was kept artificially, as RBI continued to buy dollar from market and helped banks use that money to buy bonds, which saw increased supply, according to Abhishek Goenka, founder & CEO, IFA Global, a foreign exchange advisory firm.

Now since the central bank has let it go, government banks are not buying dollar at important levels and there is month end dollar selling by exporters, we expect weakness of the dollar (so strength of rupee) to remain for a while, Goenka further said.

He expects the rupee to strengthen till about 70.50 level.