Mumbai, India (BBN) – The rupee rose to its highest in over two months on strong dollar inflows on Tuesday.
The domestic unit rupee rose as much as 64.35 to the dollar, its highest since September 20 compared with the previous close of 64.51. It hovered between 64.60 and 64.35 in the morning trade, reports The Hindu Business Line.
According to forex dealers, RBI was not spotted in the spot forex market.
The unit briefly trimmed some of its gains when oil marketing companies were spotted buying dollars at 64.46 levels, one foreign bank dealer said.
India has received $34 billion of net inflows so far since January including $8.2 billion in shares and $25.8 billion in bonds.
The 10-year benchmark bond yield rose for the sixth straight day as traders preferred to stay light ahead of GDP data due on Thursday and monetary policy statement next week.
Expectations that the government will soon sell a new-10 year paper also prompted traders to offload the current paper.
Globally, the US dollar was lower against major rivals in early Asian trade, with the near-term focus on a possible Senate vote on a US tax plan later in the week.
Meanwhile, the benchmark BSE Sensex was trading down by 60.41 points or 0.18 per cent at 33,664.03.