Rupee signs off the best week since october

The rupee completed the best week since October as signs the global economy is recovering bolstered demand for emerging-market assets.

The rupee fell for the first session in seven on Friday as dollar demand from oil importers overwhelmed inflows, although suspected central bank intervention helped the currency recover smartly from the day's low. It ended at 50.32/33 to the dollar, slightly down from Thursday's close of 50.25/26 .

The currency extended this month's gain to 5.4%, the best performance among Asian currencies. "Some good data across the globe has fueled risk appetite and positive developments in Europe have led to big inflows into Asia," said Olivier Desbarres, head, forex strategy for Asia-Pacific ex-Japan at Barclays Capital. "Also, some of these assets were looking cheap."

The currency may strengthen past 50 per dollar, he said.

France sold two-year debt at an average yield of 1.05 percent yesterday, compared with 1.58 percent in October. Spain issued bonds due 2022 at an average rate of 5.403 percent, down from 6.975 percent in November.

The rupee will be at 49.50 a dollar in three months, Credit Suisse Group AG said in a note on Friday, stronger than its earlier estimate of 53.3.