Rising for the third session in a row, the rupee advanced by 16 paise to close at an over one-week high of 61.79 against the dollar on Tuesday after exporters sold the American currency ahead of durable goods order data.
Negative closing in Indian stocks and a firm dollar overseas, however, restricted the rupee’s rise.
The rupee opened higher at 61.84 a dollar from Monday’s close of 61.95 at the interbank foreign exchange market.
However, it fell back in the afternoon trade to a low of 61.97 tracking a drop in stocks and a strong dollar abroad.
Later, it bounced back on dollar selling by exporters and some banks to a high of 61.78, before settling at 61.79, a net rise of 16 paise or 0.23 per cent. This is its best closing since 61.73 on December 16.
In three trading days, the rupee had shot up by 35 paise or 0.56 per cent against the U.S. dollar.
The Reserve Bank fixed the reference rate for the dollar at 61.8668 and for the euro at 84.6510 — PTI