Mumbai: Relentless capital inflows in record setting local equities helped the rupee to breach the 60-mark to end the week up by 98 paise at 59.91 against the Greenback after eight months, extending gains for the second week in a row.
Continued dollar selling by exporters also aided the rupee's upward journey.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 60.92 a dollar from last weekend's close of 60.89 and immediately touched a low of 60.93.
Later, it never looked back and rebounded to a high of 59.68 before settling the week at 59.91, showing a rise of 98 paise or 1.61 percent. Last week, it has risen by 30 paise or 0.49 percent.
Previously, the rupee had logged its intra-day high of 59.52 on July 30, 2013 and registered its closing high of 59.41 on July 29, 2013.
The Indian benchmark sensex closed the week sharply higher by 584.65 points or 2.69 percent to new peak while FIIs infused almost USD 1.03 billion in the week as per Sebi data.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,"This week Rupee appreciated by nearly one Rupee to trade eight month high taking cues from FIIs which helped Indian equities to post new all time high this week. On 1st April the RBI is expected to keep rates unchanged, and the general elections due by May would further help the Indian equity markets. The trading range for the Spot USD/INR pair is expected to be within 59.20 to 61.00.
"Higher inflows from foreign investors has been supporting the rupee," said Ramesh Singh, Treasurer at Central Bank of India, adding that once the current euphoria on hopes of a new government gets over and markets get stabilised, we may see some fall in the rupee.
The rupee premium for the forward dollar ended mixed on alternate bouts of buying and selling.
The benchmark six-month forward dollar premium payable in August finished lower at 211-213 paise from last weekend's close of 220-222 paise, while far-forward contracts maturing in February 2015 edged up to 465-467 paise from 464-466 paise.
The RBI fixed the reference rate for the USD at 60.0998 and for the euro at 82.5765 from 61.0465 and 84.1755, respectively.
The rupee remained firm against the pound sterling to end at 99.56 from last weekend's close of 100.53 and also shot up further to 82.27 per euro from 84.03.
It, too strengthened further to 58.54 per 100 Japanese yen from preceding weekend's close of 59.53.
First Published: Saturday, March 29, 2014, 16:29