The US dollar shed 75 paisa against the rupee in the last two days to stay at Rs102 in the inter-bank market on yesterday.
The ups and downs in the dollar prices in the past two months — from a low of Rs101 to a high of Rs103 — have changed the shape of the exchange rate. Some currency experts say that rapid fluctuations in the rupee-dollar parity is damaging the confidence of the market.
The State Bank tried its best to keep the dollar within the range of Rs103, and it did succeed in doing so for more than 20 days. But the greenback then crossed Rs103.40 the previous week, before coming back to Rs102.
Some currency experts said the market hopes for an inflow of over $1 billion through the International Monetary Fund (IMF) as two instalments are due next month. This is one of the reason for low dollar demand.
