Mumbai: The rupee was trading strong by 9 paise at 61.87 against the dollar at 13.33 p.m. local time on fresh dollar selling by banks and exporters and the rupee gained 13 paise to 61.83 per dollar in the opening trade against the previous close of 61.96 dollar.
“Exporters are hedging their positions with some dollar selling towards the end of the quarter. Also, RBI is ensuring that the volatility remains under control. RBI is said to have bought about $7 billion around 61 levels. The effort to get inflows to match the outflows has stabilized the rupee,” said a dealer with a public sector bank.
Further, the central bank has maintained that it would take care not to over tighten the monetary police though a higher inflation could result in some action on tightening the policy going forward. A tighter policy is likely to have a downward bias on the markets.
Bureau Report
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