The domestic currency rupee on Friday ended at a 2-month high, on the back of positive sentiments prevailing in the market, to 61.08 per dollar as compared with previous close of Rs 61.36 mark.
The appreciation was ascribed to talks between the White House and the Republicans failed to reach an agreement to end the budget crisis in the US.
That apart, the World Bank arm International Finance Corporation (IFC) launched India’s first offshore rupee denominated bond issue, which hopes to raise $1 billion, thus helping dollar flows into the country. Also, the government is in talks to gain entry into benchmark indexes, a move that will again help attract dollar flows into the country.
The rupee had opened at Rs 61.10 and during intra-day trades touched a high of Rs 61.01 and a low of Rs 61.37 per dollar. The local currency had ended at Rs 60.86 on August 8 against the dollar.
Further, the Reserve Bank of India (RBI) on Thursday granted banks permission to borrow from from international/multilateral financial institutions till November 30, which again, is a positive move for the rupee.
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