Rupee ends stronger on broad dollar fall; forward premiums inch up

The Indian rupee strengthened at the end of trading on Thursday, reaching 81.95 against the dollar, aided by a drop in the dollar index to multi-week lows and an upswing in forward premiums. Analysists predict that foreign inflows will push the rupee beyond the 80-per-dollar level by 2024. The interest in GBP/INR is on the rise amid investors speculating on a possible higher-than-expected Bank of England interest rate hike. Risk sentiment is looking subdued following the Fed’s recent hawkish views and announcement of necessary rate hikes to fight inflation.