The Indian rupee hit a six-month high against the dollar on Friday, fuelled by foreign fund inflows into equities, but couldn't sustain the gains as traders skimmed profits ahead of key US jobs data.
After hitting an intraday high of 44.8025 - its strongest since Apr. 25, according to Reuters data - the rupee pared its gains ahead of US payrolls data to close at 44.815/825, still stronger than a previous close of 44.885/44.895.
"It is a momentum-driven market at the moment. But there seems to be some moderate demand near the 44.80 per dollar levels which tempered the rise," said Sreebhasyam Srinivas, senior currency trader at Bank of Nova Scotia. The rupee has risen nearly 5 percent from a three-year low of 47.04 in July, helped by foreign investments in equities and declining oil prices.
"The theme at the moment seems to be sell the dollar at every uptick and, with some major stop losses triggered around the 44.95 levels, the rupee's near-term trend seems bullish," a trader at a private bank said.
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