The rupee today breached the 61-mark intra-day and closed at a new three-month high of 61.07 against the US dollar helped by heavy capital inflows, wrapping up the week with the best gain since December 2013.
Weak dollar overseas and selling of the American currency by exporters kept the rupee upbeat, said forex traders.
As per provisional stock exchange level data, FIIs pumped in over Rs 2,500 crore in stocks today.
At the Interbank Foreign Exchange (Forex) market, the rupee commenced strong at 61.01 a dollar from the previous close of 61.11. It moved up to a high of 60.94, before falling back to a low of 61.17 on some dollar demand from importers.
Later, the rupee recovered and closed at 61.07, showing a rise of four paise or 0.07 per cent. This is its strongest level at closing since 61.04 on December 10, 2013.
For the week, it gained 68 paise -- the best gain since the week ending December 6, 2013 when it was up 103 paise.
The benchmark S&P BSE Sensex today shot up by almost 406 points, or 1.89 per cent, to end at a new peak.
The dollar index, a gauge of six major global rivals, was down by 0.12 per cent ahead of key economic data in the US.
Pramit Brahmbhatt, CEO, Alpari Financial Services, India said: "Indian equities closed at all time high almost 2 per cent up for the day mainly supported by the foreign money. Taking cues from this, rupee appreciated but towards the end it lost its way. However, it still managed to end on a positive note. The trading range for the rupee is expected to be within 60.50 to 61.50."
India's current account deficit (CAD) will be contained at less than USD 40 billion this financial year, well below the record level in 2012-13, Finance Minister P Chidambaram said today.
