Rupee hits eight-month high

The rupee is trading at 59.70/71 versus Friday's close of 59.91/92 as bunched-up dollar inflows and record high domestic shares aid sentiment. The unit rose to as high as 59.60, its strongest since July 30.

Traders say some support for the dollar is likely at around 59.70 levels on the back of importer demand.

Trading in the rupee resumed after a two-day break due to a local holiday and annual closing of bank accounts.

Traders say sentiment for the rupee is positive after the Reserve Bank of India kept rates on hold at its policy review while further tightening bank's access to cheap overnight funds.

 

Gains in other Asian currencies also helping rupee sentiment.