By Neha Dasgupta
MUMBAI (Reuters) - The rupee rose to a three-week high on Friday, posting its first weekly gain in five, helped by dollar selling from state-run banks and tracking gains in regional currencies ahead of a key U.S. jobs growth data later in the day.
The 0.7 percent gain in the rupee this week came on the back of large dollar sales by corporates and banks and a recovery in Asian currencies, offsetting a net $1.5 billion in foreign investor selling in debt markets last month that had previously pressured the local unit.
Still, caution should prevail as the country inches closer to the final phase of elections, with the latest opinion polls showing that the opposition Bharatiya Janata Party and its allies were set to win a narrow majority in the 543-seat lower house of parliament.
"The INR will be in a tight range of 59.50 to 61 with market eyeing the election results," said Ashtosh Raina, head of forex trading, HDFC Bank.
The partially convertible rupee closed at 60.16/17 per dollar compared with 60.31/32 on Wednesday, after rising as high as 60.09, a level last seen on April 10.
The currency got support from dollar flows into local equities and greenback sales from state-run lenders.
Investors are expected to focus on monthly U.S. jobs data later in the day, with U.S. employers expected to have added 210,000 jobs last month, according to a Reuters poll.
Traders cited little impact from data showing the HSBC Manufacturing Purchasing Managers' Index (PMI) held steady at 51.3.
In the offshore non-deliverable forwards, the one-month contract was at 60.49 while the three-month was at 61.23.
($1 = 60.3150 Rupees)
(Editing by Subhranshu Sahu)
RESULT
Indian rupee hits one-week high; inflation in focus. * Short-covering before U.S. jobs data supports EMRGFX * U.S. non-farm payroll data also watched for cues
Indian rupee hits one-week high; inflation in focus ...
Indian rupee hits one-week high; inflation in focus. Reuters | Mumbai | Updated: Jan 10 2014, 21:51 IST . * Short-covering before U.S. jobs data supports EMRGFX
Rupee hits 3-week high on broad dlr drop | Reuters
Rupee hits 3-week high on The rupee strengthened to a three-week high on Friday boosted by broad of closely watched U.S. jobs data,
Rupee hits over one-month high; gains in shares aid ...
primarily the U.S. economic condition will drive rupee direction but expected U.S. jobs data eased Rupee hits over one-month high;
Rupee hits over one-month high; gains in shares aid | Reuters
Rupee hits over one-month high; than-expected U.S. jobs data eased worries for the rupee. Going ahead, primarily the U.S. economic
Nikkei rises to three-week high on U.S. manufacturing; G20 ...
Read 'Nikkei rises to three-week high on U.S. manufacturing; Rupee hits eight-month high; Fundamental company data provided by Capital IQ.
Forex - AUD/USD hits 3-week highs after tepid Australian data
AUD/USD hits 3-week highs after tepid Australian data.. data, as Friday's downbeat U.S. jobs report high of January 6. Data earlier showed
Indian Rupee Hits Record Low, Relief Ahead? - Yahoo! Finance
India's rupee slumped more than 1 percent to a record low against a broadly robust U.S Rupee Hits Record Low, Relief jobs market. The move in
Rupee rises to 60.16/$ - Worldnews.com
Indian Rupee Hits Record while the dollar dropped after tepid U.S. jobs data vanquished expectations The rupee rose to a three-week high helped by
Rupee recovers as RBI chief, Fed provide comfort - Yahoo ...
Investors also believe the Reserve Bank of India under Rajan is giving increased focus to The rupee rose to as high as expected U.S. jobs data had
