Indian Rupee Records Second Straight Weekly Advance
The rupee gained 0.4% this week on a US-Iran truce and arbitrage unwinding. Gains may be limited as oil prices rise and foreign investors sell Indian equities.
The Indian rupee has secured its second consecutive week of gains against the dollar, a milestone it last reached six months ago. This performance was driven by the unwinding of arbitrage positions and a decline in crude oil prices following a temporary truce between the United States and Iran.
In India, the currency experienced a volatile session, hitting a three-week peak of 92.4150 before settling at 92.7550. While the rupee closed 0.1% lower on the day, it recorded a total weekly gain of 0.4%. Support has largely come from the Reserve Bank of India's decision to limit banks' onshore foreign exchange net open positions, a move that compelled financial institutions to sell dollars in the local market.
