Rupee Posts Best Weekly Gain in a Month Closing at 85.36
Due to foreign portfolio inflows into Indian shares and a declining dollar index, the rupee rose on Thursday, recording its best weekly performance in a month.
The rupee rose from its previous session's closing of 85.67 to settle at 85.36 versus the US dollar.
On Tuesday, April 15, foreign institutional investors (FIIs) broke a nine-day selling trend by purchasing domestic stocks for Rs.6,065.78 crore, which was the third-largest single-day purchase of the year.
For the second day in a row, FIIs invested Rs.3,936.4 crore in stocks on Wednesday.
According to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, the dollar has suffered a long-term setback as a result of the US’ threats, imposition, and then postponement of significant tariffs, with the exception of China. "Markets to keep a close watch on RBI who seems to be buying dollars to curb rupees rise."
Amit Pabari, managing director at CR Forex Advisors, stated that the worldwide shift in attitude after the US efforts to slow down China's growth and solid domestic economic statistics have helped to sustain this increase in the Rupee.
According to him, this has made India a more desirable location for international institutional investors.
The US dollar's worth in relation to a basket of other currencies is measured by the dollar index, which was up 0.11 percent to 99.49, the lowest level since April 2022.
The Federal Reserve's aggressive remarks will probably cause a short-term decline in the dollar index to the 101.50–102 region, Pabari continued.
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As the US pledged to exert maximum pressure to damage Iran's supply network, crude oil prices increased for a second day. As of 3:45 PM IST, WTI crude was up 1.07 percent at 63.14 per barrel, while Brent crude was up 0.88 percent at $66.43 per barrel.