The rupee posted its fifth straight weekly gain on Friday, aided by a gush of foreign funds as investors bet on a monetary easing to boost growth in Asia's third-largest economy. Foreign funds have bought $2.6 billion of Indian shares and $3.2 billion of debt so far this years, data from the Securities and Exchange Board of India showed. "There was buying on euphoria that rate cuts are coming, that inflation is on a secular downturn," said Sailesh K. Jha, Head of Asia Strategy at Skandinaviska Enskilda Banken in Singapore, who also noted a return of "risk-on sentiment". Annual headline inflation, as measured by the wholesale price index, slowed to a two-year low of 7.47 percent in December, reflecting a sharp decline in food inflation, altough manufactured product inflation edged up.
Source: Economic Times
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