The rupee appreciation continued through Wednesday in a market dominated by mainly sellers. Opening the day firmer at 39.23 a dollar as against the previous day?s close of 39.31, the rupee touched an intraday high of 39.16.
The market witnessed heavy selling by exporters who were dumping the greenback owing to the bearish sentiment coupled with the long festive weekend.
?Many corporate establishments are closed for Divali from Thursday and it appeared they preferred to stay liquid on account of this,?? said a chief dealer at a private bank.
Inflows from foreign institutional investors were insignificant. Despite their absence the rupee gained forcing the Reserve Bank of India to intervene in a big way. The RBI intervention came in when the rupee hit an intraday high of 39.16. Government banks like Bank of Baroda, State Bank of India, Bank of India and Canara Bank were reportedly buying on behalf of RBI.
The rupee is seen firmer on Thursday. Dealers expect the rupee to gain another five to ten paise.