Rupee ends higher on foreign, state-run banks' dollar sales; rises on week

Rupee strengthens against dollar on foreign bank sales and RBI rate decision, poised for modest appreciation.

The rupee rose on April 5, bolstered by dollar sales from foreign and state-run banks and after the central bank kept rates unchanged for a seventh consecutive meeting.

The rupee closed at 83.2950 against the U.S dollar, up nearly 0.2% compared with its close of 83.4375 in the previous session.

The currency logged a gain of 0.1% week-on-week, rebounding from a record low of 83.4550 hit on Thursday.

Dollar sales picked up after the rupee managed to hold above 83.45 despite a raft of weak global cues, a FX trader at a foreign bank said.

Brent crude oil prices rising above $90 per barrel for the first time since October and hawkish comments from Federal Reserve policymakers weighed early in the session.

But foreign and state-run banks' dollar sales after the Reserve Bank of India's (RBI) policy decision helped lift the rupee, traders said.

Stop losses were hit after the currency rose above 83.35, which led to traders exiting long dollar positions, the foreign bank trader said.