The rupee on Friday gained 17 paise to close at one-week high of Rs. 54.77 against the dollar on fresh selling of the US currency by exporters and capital inflows of over $152 million in a firm stock market.
Forex dealers said, however, a firm dollar capped rupee’s rise to some extent.
The local currency started the day on a firm note at 54.84 at the Interbank Foreign Exchange (Forex) market, from its previous close of Rs. 54.94.
Later, it moved in a narrow range of Rs. 54.75-54.98 before settling at Rs. 54.77, a rise of 17 paise, or 0.31 per cent.
“The rupee regained all of its lost ground of previous session on strong equity markets which advanced higher tracking gains in Japan’s Nikkei,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
Meanwhile, the BSE benchmark Sensex bounced back by 121.04 points to 19,444.84.
Foreign institutional investors (FIIs) pumped in over $152 million (Rs 833.40 crore) in the local stock market, as per provisional data on the BSE.
Abhishek Goenka, founder and CEO, India Forex Advisors, said: “On the global front, the US dollar index was seen trading above its two week high as US lawmakers resume the fiscal cliff talks”.
The dollar index, a barometer of six major currencies, was up by 0.27 per cent, after reports said US President Barack Obama called an 11-hour meeting with top Congressional leaders to negotiate a deal to avoid the “fiscal cliff”.
