Rupee snaps three-week losing streak, strengthens 28 paise against dollar this week

The domestic currency rupee managed to settle the week 28 paise higher at 63.29 against the US dollar, breaking straight three weeks of decline. The gains were seen after the domestic currency bounced back to a two-week high during the mid-week on selling of dollars by exporters.

The first week of the new calendar year 2015 concluded on an optimistic note though on yearly basis it had lost Rs 1.23 or 1.99 per cent in calender year 2014. It had closed at 61.80 against the dollar in 2013 compared with 63.03 in 2014.

Fresh dollar selling by exporters amid strong local equities and capital inflows mainly in domestic debt market also helped the rupee recovery.

Dollar index was firm against its most peers on hopes of early key interest rates hike by the US Federal Reserve (Fed) on smart recovery in the US economy. There was also buzz that the European Central Bank ( ECB) is preparing to extend its stimulus measures.

On Thursday, the US dollar hit its highest level in nearly nine years against a basket of currencies. Back home, the rupee resumed lower at the Interbank Foreign Exchange ( Forex) market at 63.66 a dollar from last weekend's close of 63.75 and touched a 13-month low of 63.79 before rebounding sharply to a two-week high of 63.03.

It later finished the week at 63.29, suggesting a rise of 28 paise or 0.44 per cent. In last three weeks, it had plunged by 180 paise or 2.91 per cent.

The domestic benchmark S&P BSE Sensex surged 646.12 points or 2.37 per cent to end at a four-week high of 27,887.90. The foreign portfolio investors (FPIs) infused $101.91 million during the first four days of the week, as per Sebi data.