Rupee settles at near 7-wk high of 73.29, rises 13 paise against USD

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Mumbai, May 14 (PTI) The Indian rupee strengthened by 13 paise to settle at a near seven-week high of 73.29 against the US dollar on Friday, tracking weaker American currency in the overseas market.

At the interbank forex market, the local unit opened at 73.41 against the greenback and witnessed an intra-day high of 73.22 and a low of 73.41.

It finally ended at 73.29 against the American currency, registering a rise of 13 paise over its previous closing – the best closing level for the rupee since March 31.

On a weekly basis, the rupee has appreciated by 22 paise against the American dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.23 per cent to 90.54.

'The Indian rupee appreciated on Friday as the dollar was trading weak this Friday in afternoon trade,' said Sriram Iyer, Senior Research Analyst at Reliance Securities.

The US dollar edged lower against major currencies on Friday afternoon trade in Asia as risk appetite recovered across markets, after Federal Reserve officials helped calm jitters this week about accelerating US inflation.

'The currency appreciated for the third straight week supported by exporters' dollar sales,' Iyer said.

Additionally, the local unit got a lift from easing inflation worries and better than expected domestic IIP number, Iyer said.

Retail inflation slipped to a three-month low of 4.29 per cent in April.

Industrial production growth entered positive territory after a gap of two months with a record 22.4 per cent rise in March this year.

Meanwhile, Brent crude futures, the global oil benchmark, rose 1 per cent to USD 67.72 per barrel.

On the domestic equity market front, the BSE Sensex ended 41.75 points or 0.86 per cent higher at 48,732.55, while the broader NSE Nifty declined 18.70 points or 0.13 per cent to 14,677.80.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 1,260.59 crore, as per exchange data. PTI DRR MKJ MKJ

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