India Rupee’s Rally Leaves Traders Gauging RBI’s Forex Strategy

  • Rupee climbs to three-month high on robust foreign inflows
  • Traders say Reserve Bank of India may slow forex purchases
Photographer: Brent Lewin/Bloomberg
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India’s rupee hit a three-month high after breaking out of a tight trading band, boosted by strong inflows and expectations that the central bank may be slowing its purchases of dollars.

The rupee rose as much as 0.6% to 74.5562 per dollar, its highest since March 27, before closing up 0.5%. The currency has strengthened 1.3% this week in Asia’s best performance.