Rupee bounces back against dollar

New Delhi: The rupee bounced back against the American currency, recovering by 38 paise to end the week at 3-month high at 66.26 per dollar on fresh selling of dollars by banks and exporters in view of persistent foreign capital inflows into equity market coupled with lower dollar in the overseas market.

However, month-end dollar demand from importers, mainly oil refiners, restricted the rupee's gain against the dollar.

Heavy capital inflows from foreign Portfolio Investors (FPI) and Foreign Institutional Investors (FII) mainly boosted the rupee value against the dollar, a forex dealer said.

The rupee resumed lower at 66.90 as against the last weekend's level of 66.64 at the Interbank Foreign Exchange (Forex) market on initial month-end dollar demand from importers mainly oil refiners.

However, the rupee recovered afterwards to 66.17 per dollar on fag-end selling of dollars by banks and exporters on the back of foreign capital inflows before concluding at 3-month closing high at 66.26 per dollar, showing a gain of 38 paise or 0.57 percent.

The rupee had last ended at 66.14 per dollar on January 1, 2016.

The rupee had ended lower by 14 paise or 0.21 percent in the previous week.

The rupee hovered in a range of 66.17 per dollar and 66.90 per dollar during the week.

Overseas, the US dollar was trading lower against its major rivals in Asian trade during the week as dovish comments from Federal Reserve Chair Janet Yellen continued to resonate, dampening demand for the currency.