The Indian rupee rose to its highest level in nearly six months on Friday, gaining for a third straight session as foreign investors piled into domestic equity markets. The partially convertible rupee ended today at 73.40 per dollar, up 0.6%. The rupee had closed at 73.81 in the previous session. During the session, the rupee rose to 73.28 earlier, its highest level since March 5.
During today’s session, rupee traded in a range of 73.28 to 73.87 per US dollar.
The rupee rose nearly 2% for the week, its biggest weekly gain since the week ending December 21, 2018. The currency had been trading in a tight range until this week with traders saying that Reserve Bank of India was seen regularly buying dollars via state-run banks to prevent a sharp appreciation in the rupee.
Dollar inflows into the stock market and gains in other Asian peers have helped fuel the rupee’s strength. Foreign portfolio investors (FPIs) have bought $6.2 billion worth of shares so far in this month. Indian stock market benchmark Sensex is up about 5% so far this month.