Key facts
- Indian rupee strengthened by 0.9% against the US dollar.
- The rupee closed at 94.9450 per dollar.
- This is the rupee's largest daily gain since April 2.
- Forward premiums fell to 2.67 rupees, the lowest this financial year.
- The Reserve Bank of India and government introduced initiatives to attract foreign investors.
The Indian rupee experienced its most significant daily appreciation against the US dollar in over two months, closing at 94.95 per dollar. This gain of 0.9% represents the largest single-day increase since April 2. The upward momentum followed initiatives by the Reserve Bank of India and the government aimed at attracting foreign investors. Concurrently, forward premiums, which reflect the cost of hedging foreign exchange exposure, saw a notable decline, reaching 2.67 rupees. This is the lowest level observed in the current financial year, down from a previous figure of 2.85 rupees. Analysts are optimistic about increased inflows, which could further enhance the currency's performance.