Updated April 26th, 2024 at 16:38 IST

Rupee posts best weekly gain in nearly 3 months

Market analysts anticipate the rupee to maintain its current range, with potential gains capped around 83.20.

Reported by: Business Desk
Rupee posts best weekly gain in nearly 3 months | Image:Freepik

Rupee steadies: The Rupee closed marginally unchanged on Friday but marked its most substantial weekly rise in nearly three months, reflecting a recovery from its recent all-time low.

The rupee ended the day at 83.34 against the US Dollar, maintaining stability compared to its previous close at 83.3150. However, it registered a weekly gain of 0.15 per cent, its strongest performance since February 2.


Last week, the Rupee plummeted to a historic low of 83.5750. However, concerted efforts from the Reserve Bank of India (RBI), coupled with diminishing concerns over escalating tensions in the Middle East, fueled a recovery.

Looking ahead, market analysts anticipate the Rupee to maintain its current range, with potential gains capped around 83.20, according to Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial Services.


While the Dollar index remained stable at 105.6, most Asian currencies traded within narrow ranges.

The 10-year Treasury yield hovered near its highest level since November, bolstered by a stronger-than-expected US inflation print for the January–March quarter, heightening expectations of prolonged elevated policy rates by the Federal Reserve.


Market sentiment suggests that potential rate cuts by the Fed may be delayed, while expectations remain that the RBI will intervene to prevent sharp declines in the Rupee.

Meanwhile, focus shifts to US personal consumption expenditure (PCE) inflation data later in the day, providing further insights into the Fed's policy rate trajectory.


"Investors are closely watching for another higher-than-expected US inflation print today," noted analysts at ING Bank in a recent report.

(with Reuters inputs)


Published April 26th, 2024 at 16:38 IST