Inflows, culling of shorts lift Indian rupee

MUMBAI: The Indian rupee rose for the seventh straight session on Thursday, its longest winning streak since January 2024, as persistent dollar sales by foreign banks and paring of short bets on the currency helped it weather a stronger dollar.

The rupee rose to a near two-month high of 86.2075 per US dollar earlier in the day before closing at 86.3675, up 0.1% on the day.

Banks selling dollars to lock in profits on arbitrage trades between the non-deliverable and outright forwards also aided the rupee.

A broadly weaker dollar has prompted a paring of short bets against Asian currencies with shorts on the Chinese yuan, a closely tracked peer of the rupee, falling to an over one-year low, according to Reuters poll.