The rupee on Friday bounced back from overnight losses to close higher by six paise against the US currency on the back of mild sale of dollars by exporters and some banks amid renewed capital inflows.

The rupee closed at 44.98/99 against the greenback.

Forex dealers attributed rise in the rupee value to sale of dollar by exporters and some banks. Increased capital inflows too helped the rupee surge, they added.

Foreign Institutional Investors (FIIs) pumped over $165 million in current month so far.

In lacklustre trading at the forex market, the domestic unit opened higher at 44.94/95 a dollar from previous close of 45.04/05. It later moved in a narrow range between 44.91 and 45.03 before finishing the day at 44.98/99.

Meanwhile, the Bombay Stock Exchange benchmark Sensex today ended flat and the global crude oil was trading above $102 a barrel in London today.

Dollar index was down by a mere 0.03 per cent against a basket of currencies in European market today.

The dollar turned sharply lower against the euro in the New York market yesterday and fell against major currencies after the head of the European Central Bank signalled that policy markers would possibly raise interest rates next month.

The rupee premium for the forward dollar closed slightly better on stray paying pressure from banks and corporates. The benchmark six—month forward dollar premium payable in August ended a tad higher at 137—139 paise from 136—138 paise on Thursday.

Far—forward contracts maturing in February also edged up to settle at 266—268 paise from 265—267 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.99 and the euro at Rs 62.80.

The rupee recovered moderately to Rs 73.23/25 against the pound sterling from Thursday’s close of Rs 73.26/28 and also rebounded against the yen to Rs 54.45/47 per 100 yen from Rs 55.09/11 previously.

It, however, declined further to Rs 62.84/86 per euro from last close of Rs 62.49/51.

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