Mumbai: The Indian rupee could try to test nine-year highs on 23 April on expected strong capital inflows and market hopes that the central bank may not intervene heavily to check its gains ahead of a policy review on 24 April.
The partially convertible rupee ended at 41.760/770 per dollar on 20 April, compared to the previous close of 42.065/080, and not far from 41.62 hit earlier last week, which was its highest since May 1998.
The central bank bought almost $20 billion (Rs90,000 crore) from November through February, which helped fuel money supply growth and inflation, both of which are running above its comfort band.
Indian shares rose 2% on 20 April, to their highest close in nearly two months, boosted by strong foreign capital inflows. Foreigners have bought nearly $2.5 billion of stocks so far in 2007.