Mumbai: After taking respite for a week, the Indian rupee appreciated further by 11 paise to close at 60.39 against the Greenback following renewed dollar selling by exporters amid frantic capital inflow in recording breaking local equities.
However, firm dollar overseas and initial dollar demand from importers restricted the rupee rise. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced the week lower at 60.52 a dollar from preceding weekend's close of 60.50 and remained weak for the first two day's of the week to log a low of 60.6925 on dollar demand from importers and some banks on strong global cues.
The dollar gaining strength against its rivals also weighed down on the rupee as Yen slipped toward a five-year low against the dollar on hopes that Japan's Prime Minister Shinzo Abe will appoint assistant to head the ministry in charge of reforming the Government Pension Investment Fund.
However, it bounced back on recording setting local stocks and frenzied buying by foreign funds to one-month intra-day high of 60.33 on fresh dollar demand from importers on weakening of the US currency amid reports of Russia and Ukraine agreeing to a ceasefire.
Finally, it settled the week at 60.39, revealing a gain of 11 paise or 0.18 per cent. Meanwhile, the European Central Bank (ECB) Friday surprisingly cut its key policy rates to record low and announced additional measures to fuel the flagging economy.
According to forex dealers, it will help Asian currencies as liquidity will flow into Asia, including India. The Indian benchmark S&P BSE Sensex spurted by 388.01 points or 1.46 per cent, extending gains for the fourth straight week, while FPIs/FIIs picked up shares worth USD 739.41 million on first four days of the week, as per provisional data.
