Mumbai: The rupee on Wednesday staged a stellar comeback to end at a fresh one-week high of 65.01 against the US dollar with investors taking a bullish stance on the economy even as the RBI kept key rates unchanged.
Stamping its second biggest one-day rally for the year - the home currency garnered a solid 49 paise, or 0.75 per cent.
Frantic unwinding of the American currency by banks and corporates along with upbeat equities predominantly weighed on the rupee trade amid broad based dollar selling in Asia. The rupee was under severe pressure last week and touched a 6-1/2 month low 65.89 during intra-day. Forex market sentiment got a boost after core sector growth rebounded to a five-month high 4.9 per cent in August also supported by robust manufacturing PMI data. The rupee opened on a strong note at 65.37 at the Forex market and maintained its buoyant momentum throughout the day amid easing dollar pressure.