Rupee gains 58 paise to end at 3-week high of 54.26 Vs US dollar

"Weak GDP data raised hopes of some monetary easing at the next RBI meeting on December 18th. The IIP and WPI figures due next month on 12th and 14th Dec will provide further clues on rate cut in the monetary policy review," he added.

The premium for the forward dollar closed slightly better on stray payments from banks and corporates.

The benchmark six-month forward dollar premium payable in May edged up to 165-167 paise from Thursday's close of 164-166 paise and far-forward contracts maturing in November inched up to 309-311 paise from 308-310 paise.

The RBI has fixed the reference rate for the US dollar at 54.5265 and for euro at 70.8880.

The rupee remained firm against the pound sterling to end at 87.09 from overnight close of 87.85 and also improved further against the euro to 70.62 from 71.24.