The rupee rose sharply against the US dollar because heavy dollar sales by a UK-based bank and a German bank triggered multiple stop-losses below 64.05 a dollar. The rupee shot up by 25 paise to 63.8150 a dollar within 12 minutes of trade, marking its highest level since August 2015.Dealers said foreign banks could have been selling not only for foreign funds that invested in ongoing initial public offerings, but also noting arbitrage opportunity in the currency futures market. Some dealers said these dollar sales could have been to position themselves ahead of the Reserve Bank of India's monetary policy outcome, due at 1430 IST today. Moreover, a part of these significant dollar sales were said to have been on behalf of a large private company, along with a few other corporate houses That accentuated the rise in the rupee.
Source: Newswire
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