Rupee shows sharp appreciation after losses

After closing at a one-year low of Rs 45.90/91 on Thursday, the rupee on Friday showed sharp appreciation against the US currency.

After closing at a one-year low of Rs 45.90/91 on Thursday, the rupee on Friday showed sharp appreciation against the US currency following a rebound in equity markets in early trade.

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The recovery in rupee value was credited to fresh FII inflows into bourses and dollar's weakness in global markets.

In fairly active trade at the Interbank Foreign Exchange (forex) market, the Indian unit opened firm at Rs 45.83/85 a dollar and later improved further to Rs 45.8150/8250 per dollar in late morning dealings.

So far, no dollar sales were seen in the market but the rupee derived strength mainly from early firmness in equity markets and signs of increased FII inflows, forex dealers said.

The dollar was slightly weak in global markets due to profit-taking in the form of winding up ahead of the long weekend.