Mumbai, Feb 22: The rupee today gained eight paise to close at one-week high of 49.22/23 against the US dollar on sustained capital inflows amid fresh selling of the American currency by exporters.
The local unit moved between 49.10 and 49.31 at the Interbank Foreign Exchange (Forex) market before closing at 49.22/23, up by eight paise from its last close.
FIIs infused USD 304.50 million yesterday, according to Sebi data. They have picked up shares worth over USD 3.2 billion in equities in the current month till February 21 and a total over USD 5.2 billion in the current calender year so far.
Forex dealers said fresh dollar selling by exporters also aided the rupee sentiment.
Meanwhile, the BSE benchmark index Sensex ended down by over 283 points at 18,145.25.
The dollar index, consisting of six major currencies, was up by over 0.2 per cent while New York crude oil was trading below USD 106 a barrel in European market today.
The dollar pushed higher on Wednesday, climbing above the 80-yen psychological level, as relief over Greece's debt agreement settled down, and data showed Chinese manufacturing activity contracted in February.
The rupee premium for the forward dollar ended further better on sustained paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in July ended a tad higher at 160-162 paise from Tuesday's close of 159-161 paise while far-forward contracts maturing in January ended better at 296-298 paise from 293-295 paise.
The RBI has fixed the reference rate for the US dollar at 49.2453 and for euro at 65.1638.
The rupee improved further smartly against the pound sterling to finish at Rs 77.30/32 from overnight close of Rs 77.89/91, while rose against the Japanese yen to Rs 61.33/35 per 100 yen from Rs 61.88/90.
However, it moved down further slightly against the euro to Rs 65.13/15 from last close of Rs 65.12/14.