As foreign portfolio inflows into Indian stocks increased and the dollar continued to be defensive due to worries about the impact of tariffs on the largest economy in the world, the Indian rupee strengthened on Thursday to record its best weekly performance in a month.
The rupee climbed from its previous session’s close of 85.6775 to conclude at 85.3675 versus the US dollar. The currency experienced its largest weekly rise since March 17 as it increased by almost 0.8% week over week.
Asian currencies have benefited from the U.S. dollar’s ongoing weakness, and the rupee has risen as a result of increased inflows into Indian stocks. According to preliminary exchange data, nearly $1 billion worth of Indian stocks have been net purchased by foreign investors during the past two trading days.
Because the dollar index is trading below 100, the local currency is also being supported. The dollar index, which compares the value of the US dollar to six key international peers, dropped to 99.488 in early trading. The last two sessions have seen it hover around 99.
Dollar-rupee forward premiums, meanwhile, fell as the 1-year implied yield eased to a three-week low of 2.13% due to an increase in the rupee and higher U.S. government yields.
