India's rupee gained as the central bank garnered $136 billion under its capital-raising measures, far exceeding expectations and further boosting its war chest to defend the currency. The rupee strengthened as much as 0.7% to 94.2713 per dollar on Thursday, its highest level in more than a month. The pair is trading below its 100-day moving average, with traders forecasting more gains as sentiment receives a boost from the massive inflows.

The Reserve Bank of India's successful fundraising effort has provided significant support to the rupee amid global currency volatility. Market participants view the inflows as a strong signal of confidence in India's economic resilience and the central bank's ability to manage external pressures. The development comes as emerging market currencies face headwinds from shifting global monetary policies and geopolitical uncertainties.