Anna 
The Indian rupee strengthened on Friday, propelled by inflows and positive economic data that prompted economists to revise their growth forecasts for the country. At 10:54 a.m. IST, the rupee was trading at 83.3275 against the U.S. dollar, an improvement from the previous session’s 83.3950. The currency reached an intraday high of 83.2525, likely driven by dollar inflows.
There was notable selling interest in USD/INR just before the usual spot market open, possibly linked to an inflow, as indicated by the daily fix and cash swap. The daily fix occurred at a discount of 0.25 paisa, highlighting dollar selling interest at the reference rate.
The USD/INR overnight swap rate for Friday over Monday experienced an upward push. This could be attributed to banks with a dollar inflow selling dollars in the spot market and engaging in sell/buy swaps to adjust the transaction for settlement on the same day.
The positive momentum in the rupee was fueled by economic data revealing that India’s economy expanded at a faster rate than economists had anticipated. This prompted an upward revision in growth forecasts. Deutsche Bank noted that the Reserve Bank of India is likely to maintain a hawkish stance, considering the robust GDP print and potential upside risks to near-term inflation due to food price volatility.
