Rupee gains 15 paise against US dollar to end at two-week high

MUMBAI: The rupee on Friday gained 15 paise against the US currency to close at the two-week high of 44.35/36 on fresh dollar selling by some banks and exporters amid a rally in equity markets.

Dealers said that exporters and some banks reduced their dollar positions, expecting fall in dollar value due to strong euro on the back of passing of a second bail-out package for the debt-ridden Greece by euro zone leaders and the IMF.

Also, the BSE benchmark Sensex rising sharply by over 286 points or 1.55 per cent also supported the rupee, they added.

"The rupee held on to its morning gains on overnight strength in the Euro after announcement of Greece bailout plan, also provided support by the domestic equity markets," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.

"The next important event would be the RBI policy meet on coming Tuesday in which 25 bps rate hike is expected," he said.

In a lacklustre trading at the Interbank Foreign Exchange (Forex) market, the domestic unit opened higher at 44.38/39 a dollar from Thursday's close of 44.50/51.

Later, it was trapped in a narrow range of 44.34 and 44.41 before concluding at 44.35/36, a rise of 0.34 per cent. During the week, it has gained 16 paise, or 0.36 per cent.

"The trading range for the USD/INR will be 44.30 to 44.50 next session," Brahmbhatt added.