The Indian rupee ended the week with a 0.1% gain after rising 0.2% against the US dollar on 25 May. Its performance was driven by a reversal in investment flows into local equities. The rupee’s decline to near a three-month low earlier in the week was offset by dollar inflows. Quant macro strategist at Prabhudas Lilladher PMS, Ritika Chhabra, also said that foreign investment, in particular, supported the currency. The movement of the US dollar will be key to forward premiums near-term, while US core PCE data is also expected to impact bond yields and rupee premiums.
