Rupee hits one-month high on foreign fund inflows, traders wary of RBI

RBI has been aggressively buying dollars to prevent sharp appreciation in rupee and ensure export competitiveness

The rupee strengthened on Tuesday to its highest level in 1-1/2 months, boosted by foreign fund inflows to equities, though traders remain wary of central bank intervention to prevent a sharp rally in the currency.
 
The partially convertible rupee was trading at 73.50/51 per dollar at 07.55 GMT, after touching 73.45 earlier in the session — it highest since October 21. It ended the session to settle at 73.68 against the US dollar — a rise of 37 paise.
 
“The absence of the central bank from the market has helped the rupee break the 73.75 barrier," said a