Rupee at over two-month high vs USD, up 68 paise

Continuing its upward journey for the second day in a row, the Indian rupee today closed at 2-1/2-month high above 54-mark at 53.71 against the Greenback, notching a gain of 68 paise - highest in last four months - following firm local equities and sustained dollar selling by exporters.

Consistent foreign funds inflow in domestic stocks also kept the rupee rising, but higher dollar overseas failed to check the rally, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced strong at 54.09 a dollar from previous close of 54.39 but immediately fell back to a low of 54.20.

However, it later bounced back to a high of 53.70 before concluding at 53.71 - level not seen since November 1, 2012, showing a rise of 68 paise or 1.25 pct. Previously, it had gained by 93 paise or 1.71 pct on September 21, 2012.

The Indian benchmark Sensex on Friday improved further by 75.01 points or 0.38 per cent on rally in refinery stocks while Foreign Institutional Investors (FIIs) pumped in $113.72 million yesterday as per Sebi data.