Indian rupee gains on narrowing trade deficit, foreign buying

MUMBAI: The Indian rupee rallied on Friday to notch its third consecutive weekly gain after a narrowing trade deficit helped ease concerns about the country's fiscal outlook, while signs of foreign flows also helped.

Imports fell sharply in June, partly because of lower global oil prices, narrowing the trade deficit in June and providing a silver lining for a country facing concerns about its record high current account deficit.

Traders also cited strong buying by foreign investors into Indian debt and stock markets this month, which analysts have attributed in part to hopes for government policy reforms after the presidential elections on July 19.

Tweet