Rupee's Remarkable Weekly Performance

The Indian rupee celebrated its strongest weekly gain in a month, closing at 85.37 against the dollar. This surge was primarily fueled by increased foreign portfolio inflows into Indian equities and a persistently weak dollar, which buoyed emerging Asian currencies, including the rupee.

Market Dynamics and Influences

Foreign investors have been net buyers of over $1 billion of Indian stocks in the last two trading sessions, as per provisional exchange data. The dollar's struggle to gain ground, despite remarks from US Fed chief Jerome Powell, further supported the rupee's ascent. Markets remained closed on Friday for Good Friday, pausing the currency's rally.

Looking Ahead

The bullish sentiment towards emerging Asian currencies, underscored by a Reuters poll, suggests a continuing trend. However, the global economic landscape, including tariff impacts, remains a critical factor to watch.