Rupee touches four year high

Mumbai: The domestic currency touched a near four-year high with the deluge of dollar supply to close at 43.60/65 in its value against the dollar. The currency gained 46 paise from its previous close.

Deals were struck after official market closing which pushed up the currency further at the 43.50 level.

The rupee touched a high of 43.33 in the course of the day, a movement of over 70 paise intra-day.

Meanwhile, a senior Government official today stated that the appreciation of the rupee would be temporary. According to analysts, RBI may be lacking the adequate instruments to take control of the heavy dollar supply currently being witnessed in the market and effectively stem the rise of the domestic currency. This stance of the regulator might however change as the new fiscal commences and the central bank floats the market stabilisation bonds. These stabilisation bonds will help curb the rupee liquidity that gets enhanced each time the central bank buys dollars in the foreign exchange market.