Forex update: Rupee ends at one-week high of 60.81 against dollar

The rupee on Friday edged up three paise to end at a one-week high of 60.81 against the Greenback at the Interbank Foreign Exchange (Forex) market on sustained dollar selling by exporters and capital inflows.

A strong dollar overseas and some hesitancy in local stocks, however, limited the rupee rise, forex dealers said.

On a weekly basis, the domestic unit, however, fell 16 paise to log its first weekly drop in seven largely due to the 48-paise drop on Monday.

The rupee on Friday resumed better at 60.78 a dollar from Thursday's close of 60.84. It was trapped in a narrow range of 60.73 and 60.8975 before finishing at 60.81, a rise of three paise or 0.05 per cent. In previous four days, rupee rose by 32 paise or 0.52 per cent.

Friday's closing of 60.81 against US dollar is the highest level since 60.65 on September 12.

The British pound staged a solid rally in early trade on Friday, as Scottish voters had decided to remain in the UK but later cooled off and eased.

The dollar index was quoting sharply higher by 0.34 per cent against its major global rivals.

Pramit Brahmbhatt, Veracity Group CEO, said, "Today rupee traded in a thin range and ended near previous close. Rupee is expected to appreciate in coming days tracking gains in local equities. Trading range for the Spot USD/INR pair is expected to be within 60.30 to 61.30."

In the forwards market on Friday, premium closed steady to firm on stray payments from banks and corporates.

The benchmark six-month premium payable in February ended at its overnight closing level of 221.5-223.5 paise while far-forward contracts maturing in August, 2015 rose to 479.5-481.5 paise from 475-477 paise.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) Sensex, after two days of strong rally, ended lower by 21.79 points (or 0.08 per cent).

FPIs/FIIs bought shares worth US $25.31 million on Thursday, as per Securities and Exchange Board of India (Sebi) data.

The Reserve Bank of India (RBI) fixed the reference rate for dollar at 60.8055 and for the euro at 78.4695.

The rupee remained weak against the pound to 99.54 from Thursday's close of 99.41 while continued its upward march to end at 78.17 per euro from 78.37. It also improved further to 55.89 per 100 Japanese yen from 55.98.