Rupee strengthens

The rupee closed marginally higher on Monday amid soft dollar demand from importers, dealers said.

In the interbank market, the rupee ended at 121.53 against the dollar as compared to Friday’s closing of 121.54. “There was an importer dollar demand, but large import bills were not there,” a currency dealer said.

Many analysts expect the rupee to continue to experience volatility, as well as pressure in the coming two to three months due to falling foreign exchange reserves and the limited intervention by the central bank in the currency markets.

In the open market, the rupee traded at 124 for buying and 124.30 for selling against the dollar. It hovered at 124/124.50 in the previous session.