Rupee bounces back to 64.73 on strong fundamentals

Kolkata: The rupee bounced back Wednesday to close at 64.73 a dollar reviving the hope of strengthening further to 64.30 level in next few days, dealers said.

It was at 64.89 a dollar on Tuesday's close.

The Indian currency was short of touching the psychological 65 mark Wednesday and rebounded from 64.95 in the intra-day trade, much to the relief of foreign exchange dealers.Traders were expecting some pain had it breached the psychological level.

The fundamentals are positive with Goods & Services Tax seen getting implemented and monsoon seen hitting Kerala before May 30.

Independent foreign exchange analysts KN Dey said that only external shocks can put pressure on rupee, otherwise it is poised to be back to 64.30 level.

On Tuesday, traders rushed to buy dollars on news of Indian Army destroying Pakistani bunkers along the Line of Control, leading to rupee at 64.89 per dollar, a seven week low.

The dollar index, which measures the US currency’s strength against major currencies, was seen trading at 97.45. When Donald Trump took oath as the 45th US President in January, the index was over 100.