Rupee at 3-week high, up 26 paise

Copious supply of dollar in local stocks amid sustained dollar selling by exporters and some banks helped the rupee to end below 49-mark at 3-week high of 48.93/94 against the Greenback, extending gains for the third straight day.

Continued dollar weakness in overseas markets to helped the rupee rally, ignoring bearishness in local equities.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened strong at 49.04/05 as against overnight close of 49.19/20 on early rise in local stocks but fell back to a low of 49.16 on reversal of trend in equities which later showed weakness.

However, dollar selling by exporters and some banks on hopes of further fall in dollar value overseas after bailout package for Greece by Eurozone leaders and a strong German sentiment survey that encouraged investors to pick up riskier assets like stocks.

It later bounced back to settle at 48.93/94, showing a net rise of 0.53 per cent.

Foreign Institutional Investors (FIIs), the main booster of the rupee, pumped in nearly $5.5 billion in equities so far in the current calendar year.

The rupee appreciated by 16 paise to Rs 49.03 per dollar in early trade on the Interbank Foreign Exchange on Friday, as the US currency weakened against euro and other major currencies.

Dealers said euro's gain against the dollar on strong economic data and a higher opening in the domestic equity markets mainly supported the rupee.