Indian Rupee Records Best Weekly Gain Since Jan 2023 Despite Friday Dip

The Indian rupee delivered its best weekly gain in over three years, rising 1.4% on the week, driven by robust foreign inflows and improved investor sentiment. This marks the strongest weekly performance since January 2023, underscoring the currency’s resilience in a volatile global environment.

Despite the upbeat weekly trend, the rupee closed 0.33% lower on Friday at 90.6550 per U.S. dollar, compared to the previous close of 90.3550. Analysts attribute the dip to profit-taking and near-term dollar strength, even as the broader outlook remains positive.

Key Highlights:

• Weekly Performance: Rupee gained 1.4%, best since Jan 2023.
• Closing Trend: Ended Friday down 0.33% at 90.6550/USD.
• Market Drivers: Strong foreign inflows, improved sentiment, and supportive macroeconomic indicators.
• Short-Term Pressure: Profit-taking and dollar strength weighed on Friday’s close.
• Outlook: Analysts expect continued resilience amid global uncertainties.

The rupee’s performance reflects India’s improving economic fundamentals and investor confidence, positioning it strongly in the regional currency landscape.

Sources: Reuters, Bloomberg, Economic Times, Mint