The rupee rose to its highest in more than a month on Wednesday, boosted by foreign inflows, and dealers said they expected the domestic currency to appreciate further in the coming days due to improved supplies and positive sentiment.
In the interbank market, the rupee closed at 169.97 per dollar, its strongest since September 27 and 0.34 percent higher than Tuesday’s close of 170.54.
The rupee ended at 171.20 to the dollar in the open market. It finished at 171.50 in the previous session.
“There were some foreign inflows, which supported the local unit,” said a dealer at a commercial bank.
“If this trend continues, the rupee will rise to 168 level next week.”
The rupee has gained 3.02 percent since its record low of 175.27 on October 26.
The rupee continued to go up after the government said the deal between the International Monetary Fund (IMF) for the revival of the $6 billion Extended Fund Facility would finalize this week.