Rupee strengthens to 20-month high

In Asia, the rupee was the best performing currency on Wednesday

The rupee rose beyond 64 a dollar on Wednesday as equity indices hit record highs on huge buying interest from foreign investors. 

To lock the rupee at these levels, large importers swept in to hedge in the forward market, pushing rates at the longer end (one year) by six to seven paise. The partially convertible rupee strengthened to 63.93 a dollar, its highest since August 2015. It then closed at 64.07, against Tuesday’s of 64.26.“There was a massive dollar selling interest. Part of the flow was related to NTPC’s Rs 2,000-crore masala bond issuance, in which investors converted their dollars to