Rupee at 5-week high vs dollar; gains 7 paise

MUMBAI: Recovering from its early losses, the rupee today closed at more-than five-week high of 48.69/70 against the US currency, higher by 7 paise, on sustained dollar selling by exporters amid increased capital inflows.

At the Interbank foreign Exchange (Forex) market, the domestic unit opened just stable at 48.77/78 a dollar from last Friday's close of 48.76/77 and immediately touched a low of 48.90 on fall in local stocks and firm dollar overseas.

However, it bounced back to a high of 48.61 on late dollar selling by exporters and some banks and continued portfolio investments by foreign funds.

Finally, it settled better at 48.69/70. In the last four trading sessions, it has spurted by 132 paise or 2.64 per cent.

The BSE benchmark Sensex fell by almost 100 points or 0.56 per cent today, capping the rupee rise to certain extent.

The dollar index, a gauge of six major currencies, was up by nearly 1.1 per cent while New York crude oil was trading below $ 93 a barrel in European market today.

"FII inflows in local equities amid late rebound in Euro helped the rupee to recover early losses and closed better. Looking at the strong dollar one can expect rupee to trade near 49.00 levels and the trading range for the $/INR will be 48.50 to 49.00 tomorrow," Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.