Indian rupee scales 2-month peak as $136bn inflows bolster currency against global risks

MUMBAI: The Indian rupee climbed to a two-month high on Thursday after massive overseas fundraising through one-off measures far exceeded market expectations, improving the currency’s outlook at a time when a renewed US-Iran conflict has pushed crude prices higher and contributed to a global bond selloff. The rupee opened at 94.30 per dollar, its highest level since late June, after settling at 94.97 on Wednesday. The unit has risen more than 1% this week, making it among the best-performing currencies in Asia. India attracted a much larger-than-expected $136.4 billion through special foreign-currency mobilisation measures unveiled in June, the Reserve Bank of India said on Wednesday. Most inflows were through non-resident deposits, with smaller contributions from external commercial and overseas borrowings. The inflows will further boost India’s foreign-exchange reserves, which jumped to a all-time high last month, providing the central bank more dry powder to defend the rupee and absorb oil and other external shocks. India’s inflows “materially strengthen” the RBI’s hand, Kunal Sodhani, head treasury of Shinhan Bank, said. “The key is that the RBI now has considerably more flexib