The rupee ended at a one-week high of 61.91, up 17 paise against the dollar ahead of an expected positive data on industrial output.

However, the industrial output data, which released late evening on Friday, contracted to -2.1 per cent signalling a steep decline in consumption activity. This is likely to weigh on the rupee sentiments on Monday.

On Friday, the domestic unit opened 8 paise stronger to 62 per dollar against the previous close of 62.08 on the back of weakness in the American currency.

The unit continued to gain during the day to touch one-week’s high of 61.80 per dollar at the Interbank Foreign Exchange market. The rupee has gained 10 per cent since its life-time low of 68.80 in August last year.

The negative data on industrial output will force the RBI to maintain its hawkish stance on the interest rates. The RBI, due to announce its monetary policy on January 28, is likely to hold repo rate. This will further hit the industrial credit demand.

Market players are also maintaining a cautious stance ahead of the inflation data due next week. The inflation numbers, which are expected to ease, will be watched out for further cues on determining the interest rate decision.

Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow short-term money from each other, closed weaker at 8 per cent from the previous close of 8.30 per cent.

Yield on benchmark 8.83 per cent government bond, maturing in 2023, softened to 8.76 per cent from the previous close of 8.79 per cent. Prices ended higher at Rs 100.45 from Rs 100.24.