Rupee ends flat at 59.72 vs US dollar; logs best week since May 16

Mumbai: The rupee on Friday ended a mere one paisa higher at 59.72 against the US dollar on alternate bouts of demand and supply, wrapping up its best weekly performance since the period ended May 16.

It gained 36 paise against the Greenback in the week ended on Friday on hopes of a growth-oriented budget on July 10. In the week ended May 16 when the BJP government stormed to power at the Centre after elections, the rupee had appreciated by a whopping 125 paise against the dollar.

The rupee on Friday commenced better at 59.69 a dollar from last close of 59.73 at the Interbank Foreign Exchange (Forex) market. It was later trapped in a range of 59.60 and 59.8250 before settling at 59.72, showing a mere gain of one paisa or 0.02 per cent.

The benchmark S&P BSE Sensex shot up by 138.31 pts to end at a new life-time high 25,962.05. FIIs had bought shares worth Rs 950.82 crore yesterday, as per provisional data. The dollar index was up by 0.10 per cent against its six major global rivals.

Abhishek Goenka Founder and CEO, India Forex Advisors said, despite the upbeat jobs data from the US, rupee was seen holding on to its gains during the first half of the trading session underpinned by the sustained flows from the FIIs.

"Rupee which was quite range bound throughout this week is now waiting for the release of the Budget which is the next major trigger for the domestic markets," said Abhishek Goenka, Founder & CEO, India Forex Advisors.

Meanwhile, the premium for forward dollar dropped further on sustained receipts by exporters. The benchmark six-month premium payable in December dipped to 251.5-253.5 paise from last close of 255-257 paise.

Far-forward contracts maturing in June, 2015 also declined to 498.5-501.5 paise from 504-506 paise. The Reserve Bank of India fixed the reference rate for dollar at 59.7939 and for the euro at 81.3203.

The rupee fell back slightly against the pound to 102.35 from 102.31 previously while firmed up further to end at 81.18 per euro from 81.53. It remained firm to 58.52 per 100 Japanese yen from 58.63.