Forex: The rupee continued its north-bound journey for the third week in a row, appreciating by 29 paise to close the shortened week at more than three week high of 60.47 against the US dollar on record-breaking local equities amid sustained foreign portfolio investments.
The forex market was closed on Monday, August 18, 2014, on account of 'Parsi New Year'. Despite firm dollar overseas, continued selling of the American unit by exporters and some banks also aided the rupee rally. The rupee was seen gaining against the USD after Standard & Poor's said efforts to cut the budget deficit are positive for the country's credit rating, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced the week a tad lower at 60.77 a dollar from last weekend's close of 60.76 and touched a low of 60.88 on Tuesday as dollar index hit the 11-month high, trading above USD 82 -- highest since September last week -- against its major global rivals following the gradual strengthening of the US economic outlook.
Dollar demand from importers, mainly oil refiners, too weighed on the rupee. Later, it bounced back with a vengeance to a high of 60.3750 on strong rally in local equities to new peaks and heavy capital inflows in domestic stocks as well as bonds. Rally in the dollar against its key rivals after the Federal Reserve is scheduled to end its asset purchase programme by October 2014 and a string of upbeat US economic data could not put pressure on the rupee.
The rupee closed the week with a gain of 29 paise, or 0.48 per cent, at 60.47, a level not seen since July 30, 2014 when it had finished at 60.06. In straight three weeks, it has gained 71 paise or 1.16 per cent.