Rupee Hits Six-Week High Amid Dollar Inflows
The Indian rupee has continued its upward trend, reaching a six-week high of 94.43 against the US dollar on Friday. This marks the sixth consecutive trading session where the currency has strengthened, with a total gain of around one rupee over the past week.
Large foreign currency inflows and Reserve Bank of India (RBI) intervention have been key factors in supporting the local unit. The RBI's special swap facilities have attracted significant dollar inflows, with banks mobilizing $127.22 billion through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.
The central bank has also intervened directly in the foreign exchange market by selling dollars to counter depreciation pressure from high oil prices and global bond-market volatility.