The Indian rupee ended three days of losses after a volatile session to close at 60.13 against the US dollar following firm local equities and fresh currency sales by exporters.
Early gains were erased after the Reserve Bank of India (RBI) said it didn't have any target level for the rupee. Rise in the dollar overseas also capped the rupee surge, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed strong at 60.00 to a dollar compared with the previous close of 60.21 and gained to as much as 59.91 as local stocks climbed.
However, RBI Governor D Subbarao's comment in Chennai that the central bank doesn't have an "an exchange rate target" dented sentiments. Continued dollar demand from importers and some banks also saw the rupee dropping to a low of 60.38 in late afternoon deals.
The currency later rebounded on fag-end dollar selling by exporters to settle at 60.13, ekeing out a gain of eight paise, or 0.13 per cent. The rupee had plunged 82 paise, or 1.38 per cent, in the past three days.
The benchmark S&P Bombay Stock Exchange Sensex on Thursday added 233 points, or 1.22 per cent. FIIs pumped Rs 164.56 crore in equities on Thursday, according to provisional data with stock exchanges.
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