The rupee appreciated by 35 paise on Monday to close at a two weeks high against the US currency due to persistent selling pressure of dollar from exporters and banks after weakness in the greenback in global markets.
It closed at 46.45/46 a dollar, a gain of 35 paise over the previous closing. It moved in a range of 46.36 and 46.65 during the day.
The rupee has gained by 95 paise or 2% in last four sessions. Dealers said exporters sold dollars after the American currency came under pressure in overseas markets.
The dollar weakened in overseas market after the G-20 meeting and US jobs data that did little to alter the view that US interest rates that will stay low for some time, offering investors little incentive to buy the currency.
10-year bonds rose for the first time in four days after Prime Minister Manmohan Singh signaled fiscal stimulus measures may be withdrawn next year, bolstering investor confidence in the nation?s assets.
The yield on the benchmark note maturing in 2019 fell from the highest level in more than a week after Singh on Sunday said that faster economic growth will allow the steps to be wound down. The prime minister said the economy may expand 6.5% in the year ending March 31 and 7% the following year.
?The sooner the withdrawal the quicker it will stabilize markets and reflect more realistic levels,? said S. Rajendran, general manager of treasury at Union Bank of India. ?I am expecting yields to drop in the near-term.?