Extending gains for the second straight day, the rupee on Friday closed 26 paise higher at 51.20/21, a fresh two-week high, against the U.S. dollar, amid a rise in stocks and sustained dollar selling by exporters and some corporates.

After opening lower at the Interbank Foreign Exchange (Forex) market, the rupee bounced back in line with a smart rally in local stocks and touched a new two-week high of 51.20/21.

The BSE benchmark index, Sensex, meanwhile moved up 363 points to 16,846.83, completing three-sessions of gains.

FIIs injected $201.97 million in two days since November 30 as per Sebi data.

The rupee premium for the forward dollar remained firm on persistent paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in may ended up at 118-120 paise from Thursday’s close of 114-116 paise and far-forward contracts maturing in November also ended strong at 197-200 paise from 185-187 paise previously.

The Reserve Bank fixed the reference rate for the U.S. dollar at Rs. 51.3523 and for the euro at Rs. 69.1380.

The rupee improved further against the pound sterling to finish at Rs. 80.34/36 from Thursday’s close of Rs. 80.82/84 and also hardened to Rs. 69.11/13 per euro from Rs. 69.34/36 previously.

It too shot up against the Japanese yen to Rs. 65.67/69 per 100 yen from last close or Rs. 66.25/27.

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