The rupee on Friday shot up by 27 paise to close at nearly a two-week high of 52.71/72 against the dollar on fresh dollar selling by exporters amid signs of sustained capital inflows.
At the interbank foreign exchange market, the domestic currency moved in a range of 53.00 and 52.70 before settling at 52.71/72, up 0.51% or 27 paise from its last close.
Forex dealers said fresh dollar selling by exporters on hopes of further fall in dollar in the overseas market improved the rupee sentiment.
Meanwhile, the benchmark BSE Sensex moved between positive and negative terrain in a 336-point range, before closing up, but by only 10.65 points or 0.07%.
The dollar index was down by 0.02% against six rivals.
According to data available with Sebi, foreign institutional investors infused over $1 billion in debt markets and pumped in $190 million in equities till January 5.
The rupee premium for the forward dollar recovered in line with smart rebound in rupee in cash segment on fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in June rose to 150-152 paise from Thursday’s level of 147-149 paise and far-forward contracts maturing in December also ended higher at 250-252 paise from 241-243 paise previously.
10-year bond yields held at the lowest level in two weeks.
The yield on the 8.79% note due November 2021 was unchanged at 8.33% as of 9:06 am in Mumbai, according to the central bank?s trading system.