The Indian rupee broke above the psychologically key 45.50 per dollar mark on Friday to close at an eight-week high, helped by trade remittances and foreign investments in the local stock market, dealers said.
The absence of central bank intervention also helped the rupee's gains, dealers added.
The rupee rose for the third straight day to end at 45.4475/4550 per dollar, up from the previous close of 45.5350/5400. The local unit last finished higher than Friday's close on November 14 when it ended at 45.4150/4250.
It has gained 0.6 percent this week, drawing support from foreign fund investments and the dollar's overseas weakness against most major currencies. Traders said sentiment also got a boost after the government decided on Thursday to cut duties on a wide range of goods and services.
The cuts are expected to attract more foreign investments in the short term, analysts said.
Foreign funds have invested $232.5 million in Indian shares in the first week of January after pumping in a record $6.7 billion in 2003.
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