The rupee was trading strong by 27 paise at 62.33 against the dollar at 2.23 p.m. local time on fresh dollar selling by banks and exporters as the US currency edged lower against other currencies yesterday.
The domestic unit opened flat at 62.60 against the dollar as the markets remained jittery ahead of the current account deficit data that was released by the Reserve Bank of India on Monday.
“There are inflows into the market, ever since the Reserve Bank liberalised the swap window option for foreign investors,” said a top Treasury official with a public sector bank.
He did not want to be quoted as the RBI has barred dealers from airing their views on the rupee.
It is estimated that upwards of $3 billion have trickled in the past two weeks, he said. “It gives an indication that the RBI has the power to hit back, if the rupee slumps further.''
He added that the bank expects the rupee to trade in the range of 61 to 62 in the remainder of the week.
