Indian rupee open 3 paise up at 85.94 against the US dollar on March 24. The local currency ended at 85.97 against the greenback at previous closing session.
Currency experts said that traders to remain on the sidelines ahead of the USD/INR Buy/Sell swap auction to be held today.
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Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP said the auction for a Buy Sell Swap of $ 10 billion will be taken up by RBI today which will provide 86000 crores of durable liquidity for 3 years to the market.
“As we approach the month end, quarter end and year end some demand should come from dollar rupee pair as RBI may also want to square up its positions instead of rolling it over as it happened in January and February month ends this year,” Bhansali added.
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On Friday, Indian rupee has registered a best week in over two years today by rising over 1 percent. This was after it remained under pressure for the few months since last year, which led to heavy intervention by the Reserve Bank of India (RBI) to defend it.
The gains took place in the local currency this week was best in over two years due to global as well as domestic cues.
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The local currency rose to a 10-week high of 85.9375 during the session and gained 1.2% in the week. This has been the best level for the rupee since January 9, when it traded near 85.8638 against the US dollar.
