Mumbai:- Continuing its winning streak for the third straight session, the rupee today strengthened by another 25 paise to an over two-and-a-half month high of 66.50 a dollar on persistent selling of the American currency by banks and exporters amid persistent foreign capital inflows.
A sharp recovery in the equity market also boosted the rupee value against the dollar, a forex dealer said. Foreign funds continued their buying spree as FPI/FII bought shares worth Rs 744.49 crore yesterday as per the provisional figures issued by stock exchanges.
The rupee resumed higher at 66.62 per dollar as against the last closing level of 66.75 at the Interbank Foreign Exchange market and dropped further to 66.49 before ending at 2-1/2-month high at 66.50, showing a gain of 25 paise or 0.37 per cent.
It has gained by 88 paise or 1.31 per cent in three days.
The rupee had last ended at 66.14 per dollar on Jan 1, 2016.
The domestic unit hovered in a range of 66.49 and 66.73 during the day.
Meanwhile, the dollar index was up 0.25 pct against a basket of six currencies in the late afternoon trade.
The dollar was weaker against the yen during the Asian session trade today, as the Federal Reserve s cautious stance on interest-rate increases puts downward pressure on the greenback.
Meanwhile, the benchmark BSE Sensex ended higher by 275.37 points or 1.12 per cent. .
PTI
