The Indian rupee ended slightly stronger on Thursday, closing at 82.7850 against the U.S. dollar. This translates to a marginal gain of 0.05% compared to Wednesday's close. Notably, the rupee reached its highest level in six months earlier in the session, climbing to 82.7350.
However, the Reserve Bank of India (RBI) likely intervened through state-run banks, buying dollars to restrict the rupee's appreciation. This, coupled with dollar demand from importers, limited the rupee's gains.
Analysts believe breaching the 82.70 level could open doors for further weakening of the dollar-rupee pair. However, a sharp appreciation of the rupee in the near future seems unlikely.
Despite the prevailing bearish sentiment across most Asian currencies, a recent Reuters poll revealed that bullish bets on the Indian rupee have strengthened the most in two and a half years. Investors now await crucial U.S. economic data releases, including jobless claims data today and the non-farm payrolls report tomorrow, which could potentially impact market trends.
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