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The rupee was trading strong in the morning due to foreign flows in domestic markets. The appreciation spree is also attributed to positive sentiments created in domestic markets after the European Central Bank announced a stimulus package yesterday.
At 10:50 am, the rupee was trading at 61.47 compared with previous close of 61.71 per dollar. The rupee had opened at 61.43 and had appreciated to 61.37 but due to intervention by the central bank it witnessed some corrections.
"Next week, the rupee may trade in the range of 61 to 62. The bias is towards weakening as month-end dollar demand from importers will gain momentum," said Sandeep Gonsalves, forex consultant at Mecklai & Mecklai.
Besides that currency traders also believe the central bank will keep a close watch on the rupee and keep absorbing dollar flows to boost its foreign exchange reserves.
