Rupee ends higher; bargain hunting offsets dollar inflows

The Indian rupee strengthened slightly as importers showed interest in buying the currency after it reached its highest level since May. The rupee closed at 81.9575 per dollar, up from its previous close of 82.0375. The currency rose to a peak of 81.76 earlier in the session, its strongest level since May 8. While there is a bias for the rupee to further strengthen, it may consolidate between 82.30 and 81.60 levels. The dollar-buying interest is strong around 81.80 levels, and there is speculation that the Reserve Bank of India may have intervened.