Rupee ends strong; gains 38p

Street expects volatility in the currency to continue in the near term

The rupee ended stronger on Wednesday, owing to dollar sale by state-run banks on behalf of the Reserve Bank of India (RBI). Companies, too, sold the greenback, which helped the rupee appreciate.

The Indian currency ended at 63.32 against the dollar, compared to the previous close of 63.70. On Wednesday, the rupee opened at 63.90 and, during intra-day trades, touched a low of 63.91. In the last 15 minutes of trade, the currency strengthened from 63.50 to close at 63.32.

The Street expects volatility in the rupee to continue in the near term. "The volatility in the rupee will continue, as the demand for dollars from oil marketing companies keeps coming more into the market and RBI will have to keep intervening by selling dollars. The volatility will especially be more on days when there is a sudden demand for dollars," said Partha Bhattacharya, deputy chief executive officer of Mecklai Financial.