Mumbai, May 19: Surging dollar inflows today boosted the rupee to a 23-month closing high of 47, after it had shot above the crucial 47-mark in early deals.
Analysts say the appreciation is not over, and predict the rupee to gain further ground in the days to come given that it is still undervalued by 3 per cent on a trade-weighted basis.
“The upward momentum should continue and the rupee could soon touch 46.75,” avers Manbir Bawa, senior forex adviser at Mecklai Financials.
The sharp rise marks a gain of over 14 paise against the rupee’s previous close of 47.15 on Wednesday. The currency has firmed up 2 per cent since the beginning of this year; the increase is 3 per cent from late last year.