The rupee on Wednesday gained some strength on rising capital inflows. The rupee closed at Rs 49.3 against the US dollar on Wednesday, marginally up from Tuesday’s close of Rs 49.4.
“Today’s gain in the INR was mainly due to the equity market that saw a jump but going forward there is a concern regarding the oil payments,” said Pramit Brahmbhatt, CEO, Alpari Financials Services (India).
The Indian currency would not get stronger from here on due to the oil payments, although the dollar inflows in the economy is expected to continue, said industry trackers.
“The rupee has been range bound (between Rs 49.2 to 49.6) for some time now and situation would get clearer once the oil payments are made by importers by the end of the month,” said Brahmbhatt. “The rupee is not trading at its real value and it could jump between Rs 48.3 to Rs 48.5 after the payments are made.