Mumbai: India's rupee completed a fourth weekly gain on optimism capital inflows will quicken after the central bank cut interest rates for the first time since April to support economy.
The rupee advanced 0.9 per cent this week to 53.1975 per dollar in Mumbai, according to data. It rose 0.1 per cent yesterday. The currency, which rose 3.3 per cent last month in the best rally since September, touched 53.07 on Thursday, the strongest level since October 18.
The Reserve Bank of India lowered its benchmark repurchase rate to 7.75 per cent from 8 per cent on January 29 and said cooling inflation will give some room to ease policy further. Global funds poured $571 million into Indian shares in the first three days of this week, exchange data show. The rupee also gained as exporters repatriated overseas earnings, according to FirstRand, taking advantage of a more favourable exchange rate after the local currency lost 7.4 per cent in the past year.
"Inflows and the rupee's gains are sentiment-driven after the recent policy actions," said Harihar Krishnamoorthy, Mumbai-based treasurer at the Indian unit of FirstRand. "Current levels are appropriate for the currency and will support exports."