Mumbai: The rupee strengthened further by 27 paise to close at a four-month high of 69.58 against the US currency on Friday, extending gains for a fourth day in a row aided by easing crude oil prices and firm stock markets.
The rupee traded firm against the US currency despite a firm dollar overseas, signalling a change in sentiments of forex speculators, analysts said.
At the Interbank Foreign Exchange (Forex), the rupee opened higher at 69.68, and soon gathered momentum to touch a high of 69.57.
The domestic unit, however, pared some gains and settled the day up by 27 paise at 69.58 a dollar, a level not seen since August 1.
On Thursday, the rupee had vaulted 77 paise to a three-month high of 69.85 per US dollar.
“The INR remained unchanged today despite dollar strength, signaling changing sentiments amongst forex speculators, a rise in FII inflows and crude stabilising below USD 60,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
Sharma further noted that the key events this week will be the discussion on trade between China and the US at the G20, and agreements, if any, on crude supply cuts amongst OPEC nations.
Traders said sustained foreign fund inflows, easing crude oil prices and a smart recovery in domestic equity markets also aided the domestic currency.
Globally, Brent crude, the international benchmark, was trading 1.18 per cent down at USD 58.81 per barrel.
The 30-share Sensex settled 23.89 points, or 0.07 per cent, higher at 36,194.30, while the broader NSE Nifty gained 18.05 points, or 0.17 per cent, to 10,876.75.
Meanwhile, on net basis, foreign funds sold shares worth Rs 332.62 crore, while DIIs purchased share to the tune of Rs 1,489.65 crore Friday, provisional data showed.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.6574 and for rupee/euro at 79.3588. The reference rate for rupee/British pound was fixed at 89.0848 and for rupee/100 Japanese yen at 61.43.
Source: News18