The Indian rupee closed stronger on Friday, appreciating by nearly 1% this week. The local currency strengthened by 39 paise to close at Rs 85.97 against the greenback, according to Bloomberg. It had closed at Rs 86.36 on Friday.
The Indian rupee appreciated 41 paise during the day to strengthen past 86 against the US dollar. The local currency has strengthened past this mark for the first time since Jan. 10.
The currency hit 85.96 intraday, according to Bloomberg. The Rupee has appreciated by 1.45% against the dollar in the last eight sessions. The gaining streak has been stretching through eight consecutive days.
This marks the longest gaining streak recorded by the currency since December 2021. According to dealers, the Rupee up-move is linked to March-end move. Corporates and other exporters are pulling back funds held in foreign jurisdictions as well.
Typically companies bring back funds by selling dollars at the end of financial year, and dealers said that Rupee may even hit 85.50 by year-end.
Rupee was above 86 after Jan. 10 on fears that Trump may say that India manipulates its currency by buying dollar and thus helping its exporters and increasing its reserves, said Anil Kumar Bhansali, executive director of Finrex Treasury Advisors.
Rupee has been gaining as FPIs turned net buyers of Indian equities for second time during the week and have been buying heavily into debt. Demand from oil companies also looks muted while RBI has hardly stepped in to buy dollars just slowing down the gains.
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