Rupee at one-week high after RBI rate cut, Axis flows

Rupee was boosted by dollar inflows from the Axis Bank share sale besides RBI rate cut, say traders

The rupee traded at 53.64/65 versus its previous close of 53.91/92 against the dollar, after earlier hitting a session high of 53.5475, its highest since January 22.

Traders say sentiment for the rupee turned positive after the central bank cut both the repo rate and the cash reserve ratio by 25 basis points each in its policy review.

Some traders also say rupee was boosted by dollar inflows from the Axis Bank share sale to qualified institutional investors.

"The rate cut was most or less certain, so that is not the only reason pushing the rupee up. There seems to be Axis flows in the market as well," a senior dealer with a private bank said. Two other dealers also cited Axis Bank-related inflows.