Rupee gains on global risk revival

Rupee rose on Thursday, ending a holiday-shortened week with its first weekly gain in three, as a revival in global demand for risk prompted foreign banks to sell the greenback, but dollar demand from oil refiners limited bigger gains.

Global shares and commodity markets rose on Thursday, pulling out of their recent slide on the back of encouraging economic data from Britain and China and the US Federal Reserve's latest commitment to support growth.

Traders are now eyeing RBI’s policy review on Tuesday, which will be key in determining whether the domestic currency can sustain the muted rebound seen this week. The partially convertible rupee closed at 53.56/57 per dollar versus its previous close of 53.74/75. For the week, the unit rose 0.5 per cent, snapping two previous weeks of falls. Strong dollar demand from oil firms, as is traditional towards the end of the month, prevented further gains in the rupee.

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