The rupee bounced back by 125 paise to end the week at 48.76/77 against the Greenback in the shortened week under review following sharp rebound in local stocks due to clearance of a bail-out package for European debt crisis amid sustained dollar selling by exporters and some banks. Increased capital inflows too boosted the rupee value.

Forex market was closed on October 26 and 27 on account of ‘Diwali’

At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed the week strong at 49.85/86 a dollar from last weekend’s close of 50.01/02, two-and-a-half-year closing low, and immediately touched a low of 50.01.

However, sharp rally in local stocks amid dollar selling by exporters and some banks on hopes of fall in dollar value overseas also kept the rupee rising.

It later touched a high of 48.7350 before settling the week at 48.76/77, a net rise of 2.49 per cent. In last week, it had tumbled by Re 1, or 2.04 per cent.

The BSE benchmark Sensex logged its biggest weekly gain in absolute terms in more-han two years, with a rise of 1,019.16 points, or 6.07 per cent. It was finished down by over 295 points, or 1.74 per cent, in last week.

“This week Rupee appreciated and traded strong, taking cues from firm local equities. FII took position over 500 crores in Indian equity market in this week which helped rupee to perform against greenback. Major currencies in the international market traded strong against the greenback which helped rupee to perform,” Mr Pramit Brahmbhatt, CEO, Alpari Financial Service (India) said.

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