India's rupee registered gains against the US dollar for the second successive week, buoyed by persistent gains in domestic shares and firm trend across other Asian peers.
The partially-convertible Indian currency ended the week at 46.47/48 to the dollar after touching a high of 46.4550 and a low of 46.8700 during the four-day period. It had closed at 46.64 last Friday (Sept. 3). The rupee had gained 0.5% last week.
Overseas capital inflows remain healthy, fueled by India's robust economic fundamentals but further gains may be limited as some dollar demand is expected from importers. The FIIs have already poured in US$13.4bn into Indian stocks this year on top of the more than US$17bn invested last year.
The BSE Sensex rose on all the four days of the week and touched the highest level since February 2008. It closed on Thursday at 18,799, up 133 points or 0.7% from the previous close. It touched a 52-week high of 18,823 and rose by 3.2% in the week, its best weekly performance since early March.
Asia’s third-largest economy expanded by 8.8% in the April to June quarter, the most since 2007, a government report showed on Aug. 31.