Rupee posts best month since January on strong equity inflows

The Indian rupee ended the month of June with its highest gains since January, supported by strong foreign fund inflows into equity markets. The rupee closed at 82.0375 per dollar, rising 0.77% during the month. The inflows were driven by strong macroeconomic fundamentals and have propelled the stock markets to record highs. The rupee has also outperformed some of its Asian peers. However, analysts suggest that Indian importers should hedge their near-term foreign currency payments due to expectations of a stronger US dollar in the next quarter.