MUMBAI: The rupee rose on Thursday to log its best weekly performance in a month as foreign portfolio inflows into equities picked up and as the dollar remained on the defensive amid concerns about how tariffs would affect the US.
The rupee closed at 85.37 against the dollar, up from its close at 85.59 in the previous session. The currency rose about 0.8% week-on-week, its best weekly gain since March 17.
The markets are shut on Friday for the Good Friday holiday. Persistent weakness in the dollar has helped Asian currencies across the board, while inflows into Indian stocks have also picked up, helping lift the rupee.
Foreign investors have net bought over $1 billion of Indian stocks over the last two trading sessions, provisional exchange data showed. Bullish wagers on some emerging Asian currencies, including the rupee, have gathered steam over the last fortnight on the back of a persistently weaker dollar, a Reuters poll showed.
The dollar nudged higher against major peers on Thursday but was unable to benefit from US Fed chief Jerome Powell’s remarks that the central bank would wait for clarity on the impact of tariffs before moving on policy rates again.
REUTERS
