More wiggle room left for Rupee to strengthen

The Indian rupee scaled back from its day’s high amidst heavy intervention by the Reserve Bank of India (RBI) but still closed higher than its previous close.

The rupee has been appreciating since the market opened on Tuesday, reflecting the Uttar Pradesh election victory by the Bharatiya Janata Party. 

The rupee closed at 65.41 a dollar, strengthening as much as 65.22 a dollar in the intraday. Rupee’s closure is strongest since October 2015. 

But rupee is not alone in strengthening against the dollar in the past few days. All Asian currencies have strengthened, even as rupee’s