The rupee began the week 20 paise stronger against the dollar buoyed by dollar inflows, traders said.
The rupee closed at 86.80 against the greenback as compared to the previous closing of 87.01, gaining for the three consecutive trading days in a row.
However, the concerns over a weakening currency are still not over yet.
“This is a temporary correction. The currency may come under pressure again till there is dollar inflows on a sustained basis,” currency risk management advisor KN Dey said.
On Monday, the rupee saw the intra-day peak at 86.7625, its highest since February 24.
Dealers said that the central bank perhaps bought dollars at this level, a step to rebuild forex reserves.
