The US dollar touched eight-month high against rupee and rose by Rs3 to Rs162 in the opening hours of the interbank market on Wednesday. According to market sources, the increase in dollar’s value can be attributed to the central bank’s Tuesday night decision to cut the monetary policy rate, bringing it down to 11%.
The rupee posted moderate gains in both the currency markets against dollar during the outgoing week, boosted by strong foreign inflows and positive macroeconomic indicators. The rupee closed at 155.28 against the greenback on Monday and closed at 155.06 on Friday while in the open market the rupee gained 25 paisad to close at 155.10 against the dollar.