Rupee closes at 93.92 against Dollar, its strongest level in six months

At the end of Samvat 2082, the Indian Rupee closed at the level of 93.92 against the Dollar, which is considered its strongest level in the last six months. On 20 May, the Rupee had reached a record low of 96.82, from where a good recovery is now being observed. However, during the entire Samvat year, a decline of 6.8 per cent was recorded in the Rupee, whereas in the previous Samvat year, a decline of 4.6 per cent was recorded.

According to Anindya Banerjee of Kotak Securities, the Rupee could strengthen to the level of 92 by March, but tensions in West Asia and rising crude oil prices could affect this process. Ritesh Bhansali of Motilal Oswal Financial Services has expressed hope for strength up to 93.50, but he has warned that this strength may not last long. He also termed the Reserve Bank of India's estimated short forward position of $240 billion as a challenge.

Buying by foreign investors is also an important reason behind this strength of the Rupee. In the last 15 trading sessions, foreign portfolio investors have purchased shares worth $7.4 billion in the Indian stock market.