Indian rupee strengthens past 94/$ as oil slides, foreign inflows return

Business Recorder reported that the Indian rupee climbed above 94 to the dollar on Friday, reaching its strongest level since April 22. The currency gained 1.1% over the week, its best weekly showing in three weeks and the second-strongest among Asian currencies.

The report linked the move to lower oil prices, easing yields and renewed foreign investment in Indian shares and debt. Foreign investors bought nearly $3 billion of Indian equities this week, including $1.6 billion on Thursday, while Brent crude fell nearly 20%. India imports nearly 90% of its oil requirements, making the decline a relief for the currency. The Reserve Bank of India had also recently introduced a facility to supply dollars from reserves to state-owned oil importers.