Completing four days of gains in a row, the rupee today gained 18 paise to close at three-week high of 45.10/11 against the U.S. dollar amid exporters and banks selling the U.S. currency.
Dealers said exporters and some banks reduced their dollar positions in view of sustained capital inflows from into stock markets.
Foreign Institutional Investors (FIIs) have injected nearly $518 million in equities in the first four days of the week.
The domestic unit opened strong at 45.15/16 a dollar and logged a high of 45.0550. It ended lower at 45.10/11 on late stray dollar demand from importers, mainly oil refiners.
Global crude oil was trading near $88 a barrel in London today.
Meanwhile, the benchmark Sensex on the Bombay Stock Exchange gyrated erratically on alternate bouts of buying and selling before ending down by 25.77 points or 0.13 per cent.
The rupee premium for the forward dollar remained firm on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in May ended up at 131-1/2-133 paise from 128-129-1/2 paise on Thursday. Far-forward contracts maturing in November also rose to 225-227 paise from 218-1/2-220 paise previously.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 45.09 and the euro at Rs. 59.63.
The rupee hardened to Rs. 70.59/61 against the pound sterling from Thursday’s close of Rs. 70.69/71, but softened to Rs. 59.77/79 per euro from Rs. 59.64/66 previously.
It also dropped against the yen to Rs. 53.93/95 per 100 yen from its last close of Rs. 53.75/77.