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Bullish equities helped the Rupee to breach the appreciation mark of Rs 60.50 in afternoon trades due to dollar flows in equities. However, the rally may not continue longer as state-run banks absorb the dollar flows so that the foreign exchange reserve position of the Reserve Bank of India (RBI) is comfortable.
At 1:15 pm, the Rupee was quoting at Rs 60.48 compared with previous close of Rs 60.79. The Rupee had opened at Rs 60.61 and so far in intra-day trades it touched a high of Rs 60.43 per dollar.
"There is month-end dollar demand from importers but despite that the strengthening in rupee is due to dollar flows. These flows will continue till elections as a result the Rupee will find support," said a currency dealer with a state-run bank.
