Rupee at 2-1/2 week high as custodian banks sell dollars

RBI steps in to prevent the pair from falling further

The rupee is trading at 59.73/74 versus its close of 60.07/08 on Wednesday after hitting 59.6650, its strongest level since June 13 on the back of heavy dollar-selling by custodian banks and some local corporates.

 

Traders say the RBI stepped up its dollar purchases around 59.70 levels to prevent the pair from falling further.

 

Overseas investors bought Indian shares worth $142.8 million on Tuesday, provisional exchange data shows. Shares are up 1.2%.

 

Domestic shares rose to record highs after Finance Minister Arun Jaitley's comment on Tuesday that "mindless populism" in policymaking needed to be checked, which stoked expectations of a pragmatic budget on July 10.