The rupee surged to its highest level in more than a month on Tuesday, helped by dollar sales by exporters and robust dollar inflows into government debt. The rupee closed at 51.7 to the dollar, its strongest since December 8 and 1.5% higher than Monday’s close of 52.5. It was also the biggest intra-day gain for the rupee since December 16.
Traders said exporter selling dollars at 52.2 levels added to the rupee’s strength.
Net inflows into Indian debt so far in January stand at $1.7 billion against $213 million for equities, according to data by the Securities and Exchange Board of India.