Rupee at 44.68 versus dollar-It’s 4 month high

So far Indian rupee is performing very well. As of now, rupee has been in the range of 44.68 against dollar. It is a four month high for the rupee itself. This is happening because of the context of higher crude prices. This is bit unusual, but export performance has been very good.Fourth quarter is usually a good quarter for the rupee as there are a lot of dollar flows in the businesses and markets. Conventionally, exporters and people who have raised loans abroad bring back their money in Q4 period. It’s a common phenomenon to see a lot of dollar flows coming in March.
Anant Narayan, MD-Regional head of fixed Income & Currency Trading (South Asia) at Standard Chartered Bank, in an interview he gave his views on the phenomenon of strengthening rupee with a lot of dollar flows and whether it will extend beyond March 31. Rupee will reach 46 mark by May 2011, Narayan added.