RBI moves lift Re by 26p to 87.82 vs $

MUMBAI: The rupee gained 26 paise to close at 87.82 against the dollar — a month’s high — on Thursday. The domestic currency opened at 87.90, rose to a high of 87.70, and hit an intraday low of 87.93.The local unit has strengthened as strong central bank intervention in the previous session and renewed optimism over trade discussions between the two economies supported sentiment. The rupee has gained about 1% since Tuesday’s close after the central bank’s estimated $5-billion dollar sale helped flush out speculative short positions.The central bank is expected to continue its intervention every time there is fall seen in rupee. Resistance for the rupee is seen near 87.75, where RBI is less likely to step in. The release of RBI meeting minutes saw economic strength and support on the rupee with a fall still expect towards 90 against dollar in near term.The intervention broke a two-week stalemate around the 88.80 level, where some offshore traders had bet on the rupee falling below 90. Market participants now expect further unwinding of short positions in the near term, though some see mild currency weakness as beneficial over time.