Rupee rises 16 paise to one-month high of 62.16

The currency was up on persistent selling of dollars by banks and exporters on hopes of capital inflows into domestic markets

The Indian rupee continued to rule firm against the greenback for the fourth successive session, gaining another 16 paise today to end at over one-month high of 62.16 on persistent selling of dollars by banks and exporters on hopes of capital inflows into domestic markets.

The stock benchmark Sensex extended its gains for the third straight session, rising 127 points to end at one-week high, ahead of retail inflation and IIP data releases. This also helped the rupee.

After local markets closed for the day, government data showed that industrial production grew 3.8% in November while retail inflation moved up to 5% in December.

The rupee resumed higher at 62.15 per dollar as against the last weekend's level of 62.32 per dollar at the Interbank Foreign Exchange (Forex) Market.

It then moved up further to 62.09 per dollar before concluding at one-month high of 62.16 per dollar, showing a gain of 16 paise or 0.26%. This is its strongest close since 62.02 per dollar on December 10, 2014.

During Monday's session, it hovered in a range of 62.09 per dollar and 62.26 per dollar.

The local unit has now gained by 141 paise, or 2.23%, in four trading sessions.

In the global market, the euro declined against the dollar, approaching a nine-year low, on speculation that reports this week will strengthen the case for sovereign-bond purchases from the European Central Bank.

The dollar index was up by 0.61% against a basket of six major global rivals on hopes of rise in key interest rates.