Exporters' dollar selling helped the rupee to recover sharply versus dollar last week ending on March 25, 2006, money dealers said.
The rupee posted steep gain of 17 paisa against dollar in the interbank market at 60.02 and 60.04 for buying and selling, respectively.
In the open market also, the rupee gained seven paisa against dollar, at 60.23 and 60.28 for buying and selling, respectively, dealers said.
The rupee followed suit in relation to euro and rose by 60 paisa at Rs 72.15 and Rs 72.25 for buying and selling, respectively.
Market analysts said that the rupee recovery was due to improvement in dollars' supplies. However, if the corporate sector's demand for dollars increased, the rupee might not maintain its firmness in the coming days.
WORLD VALUE OF DOLLAR: In the early sessions the dollar recouped some losses after the tame US economic data, which subdued the expectations of higher US interest. It managed to recover some lustre versus leading currencies after comments from Federal Reserve Chairman Ben Bernanke sounded upbeat on the US economy.
A slowdown in US housing market would be entirely consistent with economic growth at or near potential, Bernanke said in New York late on Monday.
In middle of the week, the dollar managed to hold on to its overnight firmness in the overseas markets following expectations that Fed would keep pushing overnight interest rates beyond the expected increase at next week's policy meeting.
At the weekend, the dollar failed to maintain its firmness versus leading currencies due to weak US home sales report.
OPEN MARKET RATES: On Monday, the rupee posted gain of five paisa versus dollar at 60.30 for buying, while it firmly held on to its weekend level of 60.40 for selling.
The rupee, picked up 40 paisa versus euro at Rs 72.75 and Rs 72.85 for buying and selling, respectively, moneychangers said.
On Tuesday, the rupee gained four paisa versus dollar for buying at 60.26, and 10 paisa for selling at 60.30, amid improved supply of dollars.
The rupee also gained 10 paisa against euro at Rs 72.65 and Rs 72.77 for buying and selling, respectively, on dollar's strength in the world market.
On Wednesday, the rupee shed five paisa against dollar at 60.30 and 60.35 for buying and selling, respectively, dealers said. The rupee, however, gained 10 paisa versus euro for buying and selling at Rs 72.50 and Rs 72.60, respectively.
On Saturday, the rupee's sharp recovery in interbank market in the last few days helped it to gain 12 paisa versus dollar in the open market in a single-day rally at 60.23 and 60.28 for buying and selling, respectively, dealers said.
Easy supply of dollars made the rupee strong in terms of dollar and there were expectations that it might show more gains in the coming week, they added.
The rupee, however, lost 35 paisa versus euro for buying and selling at 72.15 and Rs 72.25, they said.
INTER-BANK MARKET: On March 20, the rupee shed one paisa against dollar for buying and selling at 60.19 and 60.20.
On March 21, smooth supply of dollars helped the rupee to improve its value for buying and selling at 60.15 and 60.17, dealers said.
On March 22, sharp rise was seen as the rupee picked up five paisa in relation to dollar for buying and selling at 60.10 and 60.12, moneychangers said.
On March 25, the rupee managed to hold on to its overnight level versus dollar for buying and selling at 60.02 and 60.04.
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