 "Rupee ends strong due to dollar flows by custodian banks")
The rupee ended stronger on dollar flows by custodian banks. This is the second straight day when the rupee appreciated against the dollar.
The rupee ended at Rs 62.08 compared with previous close of Rs 62.44 per dollar. The rupee had opened at Rs 62.30 and during intra-day trades it touched a high of Rs 61.98 and a low of Rs 62.37 per dollar.
“Rupee strengthened because of dollar flows by custodian banks, though we are in the month-end dollar demand time. These flows helped the rupee,” said N S Venkatesh, chief general manager and head of treasury, IDBI Bank and chairman of Fixed Income Money Market and Derivatives Association of India.
Last month the rupee had touched an all-time low of Rs 68.85 per dollar due to month-end dollar demand. However, currency experts do not see the rupee touching a fresh all-time low in the near term. “The rupee will trade in the range of Rs 62-65 for the next 3-6 months. The steps taken by RBI will help to attract dollar flows due to which rupee touching a new all-time low in the next few months is ruled out,” said J Moses Harding, executive director and chief business officer, Lakshmi Vilas Bank.