The rupee strengthened against the dollar due to falling demand for the greenback on the local currency market on Monday.
INTER-BANK MARKET RATES: The rupee posted fresh gains of 55-paisa versus the dollar for buying and selling at Rs 101.75 and Rs 101.80 respectively.
OPEN MARKET RATES: The rupee also picked up 50-paisa in relation to the dollar for buying and selling at Rs 101.20 and Rs 101.40 respectively. It also gained 25-paisa in terms of the euro for buying and selling at Rs 126.00 and Rs 126.25 respectively.
The process of given back weakness stated from 20th Oct selling level of Rs. 103.20 to 101.85. Reasons are sagging yields on US treasury, after US jobs data fell short on expectations. This prompted investors to take profit on extremely long $ positions. The absence of local support on selling side remained major impediment resulting in panic selling at whatever rates were available there seems to be a support at Rs. 101.65.