Indian rupee rises to year's highest against US dollar, logs best weekly gain in five

Written by PTI | Mumbai | Updated: Jan 11 2014, 03:21am hrs
Indian rupeeThe US dollar index, an indicator of six major global rivals, was up by 0.10 per cent
After an overnight pause, the Indian rupee today rose 17 paise to end at 61.90, its best closing level this year, on US dollar selling by exporters and stable capital inflows, helping it post the best weekly gain in five.

A firm US dollar overseas ahead of US jobs data also boosted the fortunes of the Indian currency, which closed above the 62-level for the first time since January 1.

The Indian rupee commenced higher at 62.00 a US dollar from overnight close of 62.07 and immediately touched a low of 62.01 on initial weakness in local stocks.

It later recovered and firmed up to a high of 61.83 on rise in equities. Trade data showed December exports grew by 3.49 per cent and imports fell 15.25 per cent, helping narrow the trade deficit to USD 10.1 billion in December.

The Indian rupee concluded at 61.90, a gain of 17 paise or 0.27 per cent. Previously, it had closed at 61.90 on January 1.

On a weekly basis, the Indian rupee gained 26 paise from January 3 closing of 62.16. This is the best gain since the period ended December 6, 2013 when the Indian rupee had risen by 103 paise.

The benchmark S&P BSE Sensex today surrendered a major part of its afternoon gains on fag-end selling and closed with a modest 45-point rise.

FIIs pumped in around USD 10 million after infusing USD 28.08 million yesterday, helping the domestic currency.

The US dollar index, an indicator of six major global rivals, was up by 0.10 per cent.

Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said: "Indian rupee appreciated by over quarter percent taking cues from local equities which closed on a positive note while foreign investors continued to sell dollar to invest in the debt market."

The trading range for the USD/INR pair is expected to be within 61.20 to 62.50, he added.