Mumbai: The rupee on Friday strengthened further by 4 paise to close at a fresh two-month high of 71.93 against the US currency, continuing its gaining streak for the fourth day, despite a rebound in oil prices and a stronger dollar.

A fall in crude oil prices below the $70 per barrel mark and forex inflows aided sentiment as the domestic currency gained 57 paise, or 0.79%, this week to touch a two-month high.

Increased selling of the US currency by exporters and banks and gains in equity markets also aided gains in the rupee for the fourth day.

The rupee opened higher at 71.94 per dollar against the last close of 71.97 per dollar and later touched a high of 71.71 per dollar on forex inflows and positive export data. The rupee, however, lost most of the gains later in the day as oil prices rebounded more than 1.5%, triggering concerns over inflation and current account deficit.

The rupee finally settled higher by 4 paise at 71.93 per dollar, a level not seen since September 14.

So far this year, the rupee has declined 11.3%, while foreign investors have sold $5.57 billion and $7.77 billion in the equity and debt markets, respectively.

Asian currencies were trading mixed. Thai Baht was down 0.16%, China Offshore 0.1%, South Korean won 0.12%, Singapore dollar 0.1%. However, Indonesian rupiah was up 0.43%, Japanese yen 0.23%, Philippines peso 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.978, up 0.05% from its previous close of 96.927.

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