Rupee strengthens

The rupee continued to remain stronger against the dollar in the interbank market on Tuesday, traders said.

The rupee gained 86 paisas to settle at 124.18/dollar as compared to the previous closing of 125.04.

Currency dealers said the currency posted sharp gains, as unconfirmed $2 billion inflows from China to prop up the country’s falling foreign exchange reserves sent the local currency higher. “Sentiment for the rupee was also supported, as the Islamic Development Bank agreed to provide $4.5 billion oil financing facility for the country,” a dealer said. “We expect positive sentiment on the rupee this week on likely dollar selling by exporters at higher levels.” In the open market, the rupee ended at 123, weaker than 122 on Monday.