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INR: The Indian currency records the biggest weekly gains, while others underperform

INR: The Indian currency records the biggest weekly gains, while others underperform

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New Delhi: The Indian rupee recorded the biggest weekly gains on Friday in more than a year, helped by the relief in Asian forex space over US President Donald Trump not imposing heavy tariffs immediately.

After a long time, the Indian currency saw a weekly rise, which was by 0.5 percent up against the dollar this week, the highest since the week ended on August 25, 2023, the media reported.

The Korean currency rose nearly by 2 percent and the Chinese yuan climbed by 1.3 percent.

The Dollar index was also down 1.7 percent this week as US President Donald Trump threatened tariffs on Canada, Mexico, and the European Union. His threats may cause trouble for the major economies in the future.

Portfolio flows into India have been weak amid uncertainty around Trump’s policies, sluggish growth, and higher US yields. This month, foreign investors have withdrawn more than USD 7 billion worth of investments in Indian equities.

The dollar/rupee forward premiums extended declines this week as the Reserve Bank of India conducted buy/sell swaps alongside its spot intervention.

The one-year implied yield on dollar/rupee forwards is down almost 50 basis points from its recent highs, at 2.29 percent.

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