The rupee on Thursday appreciated to 30-month high of 63.41 against the dollar, tracking gains in local equity market. Analysts expect the local currency to strengthen towards 62-level by month-end on strong foreign inflows in domestic stocks and foreign direct investment (FDI).

Forex experts said that exporters are unlikely to be impacted significantly by a stronger rupee, as global currencies have appreciated much more than the local unit.

“Rupee is an average performer if you look at the global currencies, including the euro, pound, Thai baht, yen, South Korean won and many others,” said Anindya Banerjee, currency analyst at Kotak Securities.
“So, there will not be much of an impact on Indian exporters. We believe RBI will continue to buy dollars to ch­eck a strong rupee. The ru­pee by the end of January could strengthen towards 63,” Banerjee said.

The rupee had been on a rising streak from mid-November, after which the rup­ee has appreciated by about 200 paise from 65.42 against the dollar. One major factor supporting the rise in the ru­pee is weakness in the dollar. The dollar has weakened against major currencies as investors expect growth outs­ide the US to pick up. A str­ong rally in domestic equities too weighed on the forex trading front.

The rupee tumbled to a low of 63.62 intraday before making a steep recovery to a fresh 30-month high of 63.41, gaining 12 paise aga­i­nst the dollar. This is the highest closing for the rupee since July 15, 2015 when it had finished at the same lev­el. The rupee is witnessing burst of strength since the beginning of 2018.