Mumbai: The rupee bounced back with a vengeance, recovering all of its last week's losses to end up by 43 paise at 53.94 against the Greeback during the shortened week under review on the back of fresh dollar selling by exporters and some banks amid smart rise in local equities.
The Forex market was closed on May 1 on account of "Maharashtra Day".
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced the week on a better note at 54.35 a dollar from last weekend's close of 54.37 and immediately touched a low of 54.39.
Later, it turned positive and rose to a high of 53.67 before concluding at 53.94, showing a rise of 43 paise or 0.79 percent. Last week, it had tumbled by 41 paise or 0.76 percent.
Continuing its upward march, the Indian benchmark S&P BSE Sensex closed the week up by 288.92 points or 1.50 percent, despite fag end sell-off after the announcement of key rate cut of 0.25 percent by the apex bank in its annual monetary policy meet on May 3, which disappointed the marketmen.
FIIs were net buyers during the week and they picked up shares worth Rs 4,221.25 crore as per provisional data with stock exchanges.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "As expected the RBI brought down interest rates for a third time this year by 25 basis points from 7.50 percent to 7.25 percent and kept cash reserve ratio (CRR) unchanged at 4 percent.
Markets reacted immediately to the RBI decision as equity markets closed in negative terrain on the last day and also the rupee weakened against the dollar on the last day of the week.