MUMBAI — The rupee closed at a three-month high against the US dollar on Friday, gaining for the fifth consecutive session as sustained foreign portfolio inflows into Indian equities met a softening crude basket.
Dealers said the central bank was conspicuously absent from the market, content to let the appreciation run while it rebuilds reserves depleted during last year’s defence of the currency. Exporters, however, were seen selling dollars aggressively at every uptick — a sign, traders said, that the street expects the move to extend.
The near-term path now hinges on two dates: the US payrolls release next week and the domestic monetary policy review in October. A rate cut that arrives with a dovish statement could test the rally; one framed as “calibrated easing” would likely not.
