Rupee hits two-month high of 85.93 against US dollar on fresh inflows, logs biggest weekly gain in over two years | Stock Market News

Rising for the sixth straight session, the rupee appreciated 36 paise to close at 86 (provisional) against the US dollar on Friday on a sharp rise in the domestic equity markets and fresh foreign capital inflows.

At the interbank foreign exchange, the rupee opened at 86.26, then touched an intraday high of 85.93 and a low of 86.30 against the greenback. The unit ended the session at 86 (provisional) against the dollar, registering a gain of 36 paise from its previous closing level.

On Thursday, the rupee stayed almost flat and appreciated just 1 paisa to close at 86.36 against the US dollar. This is the sixth straight session of gain for the rupee, during which it has added 123 paise.

The Indian rupee posted its best day against the dollar in more than a month on the back of dollar inflows and an unwinding of speculative long-dollar positions, which also helped it log its best week in more than two years.

The rupee ended at 85.9725 against the U.S. dollar from 86.3675 in the previous session. It rose to a 10-week high of 85.9375 during the session and gained 1.2% in the week.

A revival in domestic equities has lifted market sentiment for the rupee, Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm, said.

Traders said that large foreign banks were “privy” to a major flow this week and have been on offer for the dollar/rupee pair consistently.