Forex update: Indian rupee rebounds, ends at over 3-week high against dollar

The Indian rupee on Friday rebounded 20 paise to end at an over three-week high of 60.47 against the US dollar following strong local equities and capital inflows.

After falling six paise on Thursday , the sentiment was in favour of the rupee on Friday and helped it shrug off a better dollar in overseas markets to log a third successive weekly gain.

Exporters preferred to off-load dollars ahead of the US Federal Reserve's annual meet at Jackson Hole on Friday on hopes the Fed may keep interest rate stable at present, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed firm at 60.52 a dollar from its previous close of 60.67. It moved in a range of 60.3750 and 60.5650 before closing at 60.47 against the American unit, logging a rise of 20 paise or 0.33 per cent.

This is its best close since 60.06 on July 30.

The Indian benchmark S&P Bombay Stock Exchange (BSE) Sensex on Friday closed further up by 59.44 points, or 0.23 per cent. The CNX Nifty of the National Stock Exchange (NSE) hit its new peak on the back of foreign funds inflow.

FIIs infused Rs 412.77 crore on Thursday, as per provisional data with the stock exchanges.

The dollar index was up 0.04 per cent against major global rivals.

"Rupee was seen gaining against the US dollar after Standard & Poor's said efforts to cut the budget deficit are positive for the country's credit rating. Rupee was seen appreciating in the week as Indian stock markets were seen posting gains.

Technically, 60.30 is the strong resistance for the rupee. On the upside, a sustained closing below 60.60 will take the rupee further higher," said Abhishek Goenka, Founder and CEO, India Forex Advisors.