Rupee Ends At Over Two-Month High On Euphoria Over RBI's Dividend

The Indian rupee appreciated sharply against the US dollar on Friday amid the ongoing euphoria created by the RBI's massive dividend payout, even as the dollar index and crude oil prices traded flat.

The local currency strengthened by 18 paise to end at 83.09 against the greenback, according to Bloomberg. That's the highest level in more than two months Intraday, the legal tender strengthened by as much as 13 paise to Rs 83.15. It closed at Rs 83.28 on Wednesday. The currency market was closed on Thursday on account of Buddha Purnima.

Brent crude was trading flat at $81.36 a barrel.

The Indian rupee is on a strong footing after a big transfer from the RBI to the GOI in the form of a dividend amounting to Rs. 2.11 trillion, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "This could not only improve government finances but also allow them to spend more on infrastructure," he said.

Bhansali expected the rupee to trade between Rs 83.20 and Rs 83.45 on Friday.

"For dollar/rupee, Rs 83.20 will act as a support and Rs 83.40 as a resistance," said Kunal Sodhani, vice president at Shinhan Bank.