Rupee Touches Six-Session High Amid Record Forex Reserves

The Indian rupee has strengthened for six consecutive trading sessions, closing at 94.43 against the US dollar on Friday. This rise comes despite elevated crude oil prices and renewed tensions between the US and Iran.

Large foreign currency inflows under the Reserve Bank of India's special swap facilities have contributed to the strengthening of the rupee. The RBI has also intervened directly in the foreign exchange market through dollar sales, helping to counter depreciation pressure.

The rise in foreign currency inflows has coincided with a sharp rebuilding of India's foreign exchange reserves, which hit a record high of $740.803 billion during the week ended August 28.