Rupee ends 18 paise higher at one-month high of 63.55 versus dollar

Rising for the third straight day, the rupee gained another 18 paise to close at one-month high of 63.55 against the U.S. currency

Rising for the third straight day, the rupee gained another 18 paise to close at one-month high of 63.55 against the U.S. currency on sustained selling of dollars by banks and exporters amid firm stock markets.

Besides, a weak dollar against major world currencies globally after the Federal Reserve signalled it will move gradually once it starts tightening policy, supported the domestic unit.

The rupee resumed higher at 63.68 as against previous closing level of 63.73 at the Interbank Foreign Exchange (Forex) but eased temporarily to 63.86 in late trade.

The domestic currency finally settled at one month-high of 63.55, a rise of 18 paise, or 0.28 per cent.

The local currency has gained 71 paise, or over 1 per cent, in three days to Friday.

India Forex Advisors said that the rupee is expected to trade in 63.40—64.50 range in the short term. “Importers are advised to cover on dips near 63.60 for near term,” it said.

The benchmark BSE Sensex ended higher by 200.34 points, or 0.74 per cent, at 27,316.17.

Meanwhile, RBI today fixed the reference rate of rupee at 63.8195 against the U.S. dollar and at 72.3585 for the euro as against 63.8495 and 72.4564 on Thursday.

The reference rate for Japanese yen was fixed at 51.8300 per 100 yen and 101.2560 for the pound.