US currency closes at 159.9 in the interbank market
The rupee appreciated by 50 paisas against the US dollar and hit Rs159.59 in the interbank market on Wednesday.
It followed a similar trend in the open market, gaining 55 paisas.
Last week, the dollar closed at Rs160.58 in the interbank market.
The interbank rate is the benchmark rate to determine the value of the dollar and sets the direction for open market rates. Since open market or cash market rates usually remain higher than the interbank rate, the open market is likely to follow a similar trend.
The dollar has been closely monitored by both the traders and end users, remaining volatile throughout much of the present government’s tenure starting from August 2018. The change of regime resulted in a change of policy whereby the central bank left the rate of the dollar to the forces of demand and supply as opposed to the past practice of pegging. The dollar was trading at Rs124 when the PTI government was sworn in, but has risen by more than 30% since then.