Continuing its upward rally for the third straight session, the rupee today rose by a whopping 58 paise to hit over three-week high of 54.26 against the US dollar on the back of a sharp rally in the local equities.
Forex dealers said sustained dollar selling by exporters on hopes of further fall in value of the American currency overseas also supported the rupee's rise.
The domestic currency moved in the range of 54.26-54.84 at the Interbank Foreign Exchange (Forex) market. Later, it settled at day's high of 54.26, showing a rise of 58 paise, or 1.06 per cent, against its previous close. In the last three sessions, rupee has gained 147 paise, or 2.64 per cent.
Bonds rise on good buying
The government securities (G-Sec) rose on fresh buying support from banks and corporates, while the call money rates reacted downward at the overnight call money market here today owing to lack of demand from borrowing banks.
The 8.15% G-Sec maturing in 2022 surged to R99.8325 from R99.6325 on Thursday, and its yield moved down to 8.18% from 8.21%.