Rupee records strongest week in 11 as bond inflows, softer oil prices lend support

The Indian rupee posted its strongest weekly gain in 11 weeks, rising 0.83 percent and ending at 94.32 per dollar, marking the fourth weekly advance in the last five. The rally was supported by robust foreign inflows into Indian government securities, softer crude oil prices, and recent RBI measures including concessional FX facilities and reduced hedging costs for foreign currency deposits. However, a resurgent dollar driven by renewed US rate hike expectations following new Fed Chair Kevin Warsh's first policy meeting capped further upside, with analysts maintaining a target of 93.50.