Rupee extends rally to eight-session winning streak, strongest in six weeks

The rupee extended its gaining momentum to an eighth consecutive session on Tuesday, reaching 94.47 per dollar and achieving its strongest level in six weeks. The sustained rally represents the currency's longest winning streak in approximately eight years, signalling a marked shift in market sentiment toward the domestic unit.

Market participants attributed the rupee's strength primarily to robust foreign investor inflows, particularly linked to the anticipated initial public offering of Jio Platforms. The tech-focused subsidiary of Reliance Industries has drawn significant international interest, channelling dollars into Indian markets and lending support to the domestic currency.

The Reserve Bank of India's recent policy measures to curb excess dollar demand have also contributed to the rupee's appreciation trajectory. By implementing targeted interventions to manage liquidity in the foreign exchange market, the central bank has reinforced conditions favourable to the rupee's recovery from earlier weakness.

Analysts note that the rupee's sustained appreciation reflects a confluence of positive factors, including improved capital flows and policy support. The currency's performance underscores investor confidence in India's economic fundamentals amid global uncertainties affecting emerging market currencies more broadly.