Rupee hits over 5-month high on dollar inflow

Rupee hits over 5-month high on dollar inflow

The Indian rupee strengthened to its highest level in more than five months on Friday morning, helped by dollar inflows into the equity markets while gains in Asian peers also aided sentiment.

The partially convertible rupee rose to a high of 73.5150 per dollar, its strongest since March 5. It had closed at 73.83 on Thursday.

Traders said there was strong support for the dollar/rupee pair around 73.50 levels and a breach of that would mean further gains for the local currency in the coming week.

The central bank’s intervention in the market will also be carefully monitored. Traders expect the Reserve Bank of India to step in via state-run banks to purchase dollars to prevent a sharp appreciation in the local unit.