USD-INR
The Indian rupee rose to its highest levels on Friday on the back of strong data and expectations of bullish bank stress test results from Europe. The partially convertible rupee closed at 46.94/95 per dollar, after rising as high as 46.8925, its strongest since July 16, and 0.4% stronger than Thursday's close of 47.1250/1350.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX closed at 46.9650 and 46.97 respectively, with the total traded volume on the two exchanges at about $5.4bn.
Cross-currencies
The US Dollar Index had a roller-coaster ride this week although it managed to finish only slightly lower. The Index, which tracks the dollar against a trade-weighted basket of currencies, was at 82.52 from 82.611.
The EUR USD spiked to 1.2910 immediately after stress test results began being released, but sold off quickly on disappointment from investors. Although only a small number of European banks passed their stress tests, investors remained skeptical about the methodology used by the regulators.
The pound surged and gilts fell after reports showed the UK economy grew at the fastest pace in four years in the second quarter. Sterling surpassed $1.54 against the dollar and climbed against the euro and yen as GDP rose 1.1% in the three months through June.
The Japanese Yen retreated slightly, boosting the exporters after an impressive opening and buying continued to pace up throughout the session. On the economic front, a statement released by the Ministry of Finance revealed that Japanese investors purchased a net 1.305trn yen in foreign bonds and notes last week.