Rupee logs best week in over 3 months on strong dollar inflows

The Indian rupee had its best week against the US dollar since March, closing at 81.93 per US dollar on Friday, helped by strong foreign fund inflows and expectations that the Federal Reserve will lighten its aggressive stance on interest rates due to jobs and manufacturing data. The rupee rose 0.6% for the week on the back of very large corporate inflows and will be impacted by an expected rise in dollar-rupee forward premiums as bets of an aggressive Fed recede. The dollar index is set to log its worst week in five months on hawkishness from the European Central Bank.