RTRS: Indian rupee stalls at 2009 highs; cbank hand seen
The Indian rupee was stopped at its 2009 highs on Monday by suspected central bank intervention, but sentiment remained positive due to sharp dollar losses overseas and further gains in local shares.
The partially convertible rupee closed at 46.94/95 per dollar, 0.4 percent stronger than Friday's close of 47.11/12. It had risen as high as 46.89, its strongest since Dec. 19.
The rupee had run up in morning trade but was then restrained by dollar demand from state-run banks, who traders said appeared to be acting on behalf of the Reserve Bank of India (RBI).
"It's just a temporary fight, with the final knock-out punch yet to come. Ultimately the dollar-rupee will move down only," said Ashtosh Raina, head of forex trading at HDFC Bank.
Three traders estimated the central bank had purchased about $400 to $600 million during the session.
