Rupee climbs to near 7-month high of 93.69 against dollar

The currency closed 24 paise stronger than its previous close of 93.93, helped by broad-based dollar selling. The day’s high was 93.61 and low was 93.87.

ET Bureau

The rupee has recovered 121 paise so far this month, prompting many exporters to hedge. “Exporters are in the market, but not very aggressively,” said Ritesh Bhansali, deputy CEO of Mecklai Financial Services. “I think some further appreciation in the currency would prompt more exporters that are on the sidelines to hedge.”

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Bhansali expects 93.50 to be a good support level for the currency.

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Softer crude oil prices, inflows into domestic equities, movements in the dollar index and US treasuries, all are playing a part in the rupee’s appreciation.

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Brent crude oil prices were trading around $92 per barrel during Wednesday, while an increase in the dollar index from 101.8 to 102.5 capped appreciation in the rupee.

The Reserve Bank of India in early October announced measures aimed at curbing speculative activity in the rupee derivatives market and easing pressure on the currency, which was approaching the 97-per-dollar mark. The rupee is expected to remain in the range of 93.25 to 94.00 on Thursday.