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The rupee strengthened on Thursday to log its best weekly performance in a month on the back of foreign portfolio inflows into Indian equities and a weakening dollar index. The rupee closed at 85.36 against the US dollar, up from its close at 85.
67 in the previous session. Both state-run and foreign banks were spotted selling dollars, which supported the rupee, traders said. The currency rose eight-tenth of a percentage week-on-week, its best seven-day gain ssince March 17, according to LSEG data.
The rupee had closed at 86.04/$1 last week. Foreign banks were selling dollars, likely on behalf of their overseas clients.
Along with them, public sector banks were also selling. Intervention by RBI, if at all, was likely muted, said Ritesh Bhansali, deputy CEO at Mecklai Financial Services. The dollar index was at 99.
52 on Thursday, nearly unchanged from the previous day. Traders are expecting further weakness in the dollar and are betting against it, with long dollar positions, market participants said.120398231 Foreign investors have net bought over $1 billion of Indian stocks over the last two trading sessions, as per provisional exchange data.
Favourable crude prices, surplus liquidity, rate cut scenario and minimal impact of Trump tariffs have brought back FPIs into equity and debt markets and flows have been positive, a currency dealer said. Meanwhile, dollar-rupee forward premiums declined with the 1-year implied yield easing to a three-week low of 2.13% on the back of higher US bond yields and an uptick in the rupee, according to Reuters.
Indian financial markets are shut on Friday for the Good Friday holiday..
