Riding strong on the back of the high capital inflows, the Indian rupee has recently touched its 25 month high level and the rise is largely attributed to the qualified institutional placement by a large automobile company.

It has been learned from the dealers that the main reason for the high recently is the huge investment by an automobile giant and it may be noted here that rupee was at 44.15/16 per dollar at 12.15 PM. It is to be mentioned here that the rupee came back after hitting the level of 44.13% which is the strongest that it has touched after 8th September 2008.

According to J. Moses Harding who is the head of global markets at IndusInd Bank, the rupee may even cross the 44.20 and head to sub-44.00 in the short run. Reserve Bank of India (RBI) deputy governor had said on Tuesday that the central bank of the country is still hunting for measures to take care of the influx of foreign low of funds.

Moreover, he also said that there will be more volatility in the rupee going forward.