Rupee registers biggest weekly gain against US dollar in two months

Hope of reduced Fed rate hikes, lack of RBI dollar buys drive rupee gains

The rupee ended the current week with hefty gains, strengthening 1.7 per cent over the last five days, with Friday’s appreciation being driven by a fall in US inflation which stoked anticipation of the Federal Reserve slowing down the pace of rate hikes.

The domestic currency closed at 81.34 per US dollar on Friday as against 81.55 per dollar at previous close. The rupee had closed at 82.73 per US dollar on January 6. The gains for the currency this week are the highest since the week ended November 11, traders said.

Data released after Indian market hours