The rising trend of the rupee gathered further momentum and it spurted against the US currency on Friday, scaling a fresh 20-1/2-month peak, propelled by robust trade and corporate dollar inflows, with sentiments remaining upbeat for more gains. Extending gains for the fifth straight session, the rupee breached the psychological 47.20-dollar mark and closed at 47.1800/1850 per dollar, a sharp gain of nearly seven paise from Thursday’s close of 47.2450 It opened at 47.24/25 per dollar. RBI not to intervene in forward market Mumbai: The RBI will continue with its stance and not intervene directly in the forex forward market, said deputy governor Rakesh Mohan on the sidelines of a function organised by the Bombay Chamber of Commerce and Industry on Friday in Mumbai. Mohan said the RBI is keeping a close watch on the forward market after the sudden volatility in the market on Thursday. But he maintained that there is no shortage of dollar liquidity in the short-term. ‘‘There is no change in our stance. The rates are determined by the market,’’ Mohan said, adding that the RBI preferred less violatility in the market. The RBI has confirmed its stance in the latest monetary and credit policy and this will continue to hold good, Mohan said. Forward premiums on Thursday crashed across maturities on heavy selling interests by exporters and corporates. ENS The rupee had last hovered around the 47.18/20-dollar levels in the third week of August 2001. Heavy exporter dollar sales, leading to unwinding of long dollar positions by banks on the belief that the rupee would strengthen further, drove the rupee to new 20-1/2-month highs, with the currency also benefitting from a lingering weak dollar overseas, dealers said. If the current trend persists, the rupee could pierce through the 47-dollar barrier in the near future.
