Rupee gains 35 paise to end at four-week high

Forex dealers attributed the boost in rupee to weakness in the dollar in overseas markets

Notching up gains for the third successive session, Indian rupee today surged 35 paise to end at four-week high of 62.32 against the greenback on persistent selling by participants and on continued optimism of inflows.

Weakness in the dollar in overseas markets also boosted the rupee value, forex dealers said.

For the week, the local currency gained 97 paise, its biggest weekly rise since mid-May last year.

The rupee on Friday resumed higher at 62.48 per dollar as against the last closing level of 62.67 per dollar at the Interbank Foreign Exchange (Forex) Market.

It firmed up further to 62.29 per dollar, before finishing at 62.32 per dollar -- a gain of 35 per paise of 0.56 per cent. In three days, the rupee has now gained 125 paise or 1.97 per cent.

The rupee's closing is the best since 62.29 on December 12, 2014.

Meanwhile, the Indian stocks benchmark Sensex rose by 183.67 points, or 0.67 per cent, to finish at 27,458.38.

"Rupee strengthened for the third straight session on continued dollar selling by exporters and banks. Firm equity markets also supported sentiments as investors hope that foreigners continue to buy in domestic debt and equity," said Admisi Forex India Pvt Ltd, Director, Suresh Nair.

In global currency market, the dollar index was down by 0.25 per cent against a basket of six major global rivals. The dollar was lower against the yen and the euro in Asian trade today, with investors adopting a wait-and-watch stance ahead of US data scheduled later for release in the day.

Crude oil prices rose in Asia today after recent heavy falls, but analysts said the uptick is not likely to be very strong owing to ample global supplies.