The Indian rupee has emerged as the strongest-performing currency in Asia for June, driven by a sharp decline in global oil prices and robust capital inflows.
The move marks a significant shift for the currency, which had faced headwinds earlier in the year due to geopolitical tensions in the Middle East and a firmer US dollar.
2% to close at 94.74 against the US dollar, driven by a firmer greenback.
Bloomberg reports that the rupee's outperformance is underpinned by two primary factors: a drop in crude oil benchmarks to levels below those seen prior to the escalation of tensions with Iran, and continued foreign portfolio investment into Indian equities and bonds.
As the world's largest importer of crude, India benefits directly from lower energy costs, which narrow the trade deficit and reduce pressure on the current account.
This development follows a period of volatility for the rupee.
Recent Handelsavisen coverage noted that the currency had weakened marginally over the prior week, losing approximately 0.2% to close at 94.74 against the US dollar, driven by a firmer greenback.