Rupee jumps 27 paise to 83.03 against U.S. dollar amid stocks rally

Rupee jumps 27 paise to close at 83.03 against U.S. dollar; BSE Sensex breaches 71,000 mark.

The rupee jumped by 27 paise to close at 83.03 (provisional) against the U.S. dollar on Friday following unabated foreign fund inflows and a record-breaking rally in domestic stocks.

Stock markets continued their record run with the benchmark BSE Sensex breaching the new milestone of 71,000. Heavy buying by foreign investors also boosted the rupee sentiment, forex dealers said.

At the interbank foreign exchange market, the rupee opened flat at 83.30 against the dollar. After touching the day's low of 83.32 in early trade, the rupee reversed the losses and surged to a high of 82.94.

The rupee finally closed at 83.03, up by 27 paise over the previous close of 83.30. On a weekly basis, the rupee gained 37 paise.

The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, was almost flat at 101.01.

The 10-year U.S. Treasury yields fell below the 4% level on Thursday following signals by the U.S. Federal Reserve to cut rates next year. The yield had surged to 5% in October, its highest level since 2007.

Brent crude futures, the global oil benchmark, rose 0.44% to $76.94 per barrel.