Kolkata: The Indian currency gained 0.5% on Thursday, making it a 10-week closing high, strengthened by a higher-than-anticipated $136 billion inflows that hit Indian markets over the past two months using the special concessional window. The rupee closed 94.4850 against the US dollar, after opening at 94.30 as compared with Tuesday’s close of 94.97.
The currency recorded its sharpest daily gain since July 27. “The 93.80 level during September can’t be ruled out as we have got certain reserves muscles now,” said veteran foreign exchange consultant KN Dey.
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The overseas inflows are likely to push up the foreign reserves stock to a fresh high past $750 billion in the coming weeks, providing considerable firepower to defend the currency, DBS Bank senior economist Radhika Rao said.
