Rupee trading set to double, say local traders

Soni pointed to a likely revaluation of the Chinese renminbi at the end of this year or at the start of 2005 as a potential driver of a stronger rupee. A stronger Chinese unit would remove pressure on other Asian countries to maintain artificially weak levels for their currencies against the dollar, thus enabling the rupee to appreciate, he said.

Another factor potentially contributing to the strength of the Indian unit is the high level of investor interest in the economy, said Bhanu Baweja