Rupee gains 35 paise to hit 1-week high of 61.05

Rising for the fourth straight session, the rupee on Thursday rose by 35 paise to end at over one-week high of 61.05 against the dollar on persistent selling of the US currency from banks and exporters tracking global cues amid a surge in local equities.

The rupee resumed higher at 61.13 per dollar as against Wednesday's closing level of 61.40 at the Interbank Foreign Exchange and strengthened further to 60.90 per dollar before ending at 61.05 per dollar, a gain of 35 paise or 0.57 per cent.

The domestic unit moved in a range of 60.90 and 61.14 per dollar during the day.

This is rupee's biggest closing level since 60.96 on September 24.

It has gained by 70 paise or 1.13 per cent in the last four trading days.

"Strength in equity markets after recent correction and outflows provided strength to rupee.

"RBI announced an OMO of Rs 10,000 crore (Rs 100 billion) to suck liquidity from market," said Kiran Kumar Kavikondala, Director &

CEO, WealthRays Securities.

In London, the dollar fell to a three-week low against the yen today as investors cut favourable bets after minutes of the Federal Reserve's last meeting prompted many to push out expectations for the likely timing of an interest rate rise.

The BSE benchmark Sensex ended higher by 390.49 points or 1.49 per cent to 26,637.28.

FPIs/FIIs pulled out a massive Rs 1,440.99 crore (Rs 14.4 billion) from local equities yesterday, as per exchange data.

Pramit Brahmbhatt, Veracity Group CEO said, "Rupee gained today as local equities traded strong and closed up by 1.49 per cent for the day.

"Rupee is expected to appreciate further taking cues from the positive sentiment in the market but importers will invest to grab the advantage of this gain which will keep the local currency under pressure".