Rupee rises 1.9% in a week, closes below 95 per dollar
The Indian rupee strengthened 1.9% this week to close at 94.96 per dollar, its strongest weekly gain in seven months. Aggressive RBI measures curbed dollar demand, while a weaker dollar index supported the currency despite corporate buying pressure.
The Indian rupee extended its gain Friday to close at 94.96 a dollar, below the psychological 95-mark for the first time in 38 days, as the Reserve Bank of India's (RBI) aggressive measures in defence of the local currency led to a massive reduction in dollar demand.The currency appreciated about 1.9% this week, making it the biggest weekly gain in seven months, traders said.The rupee opened the day at 94.71, much stronger than the previous close of 95.05, and gained further to 94.67 but corporate dollar demand at lower levels forced it to settle at 94.96 in a shallow market.
