The Indian rupee posted its biggest single-day gain in nearly a month on Friday as custodian banks and corporates sold the greenback aggressively, although broader sentiment remained cautious ahead of key events, including retail inflation later in the day. For the week, the rupee fell 0.5 percent, its worst weekly fall since the week to August 1 with the domestic share market in a consolidation phase following a recent string of record highs, most recently on Monday.
"There was aggressive dollar selling by custodians and corporates today," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank. The partially convertible rupee ended at 60.65/66 per dollar, 0.5 percent stronger than its Thursday's close of 60.9250/9350. This is the rupee's best single-day performance since August 14. In the offshore non-deliverable forwards, the one-month contract was at 61.03 while the three-month contract was at 61.62.