Continuing its rising streak for the third straight session, the Indian rupee on Friday closed higher by 22 paise at 46.80/81 against the US currency on persistent dollar selling by exporters and banks amid a strong equity market.

Forex dealers said hopes of increased capital inflows into the local equity market mainly boosted the rupee sentiment. The BSE benchmark Sensex today shot up by 94.38 points or 0.59 per cent from its previous close.

In the overseas market, the dollar eased slightly which also led to the rise in rupee. Activity in the market was muted ahead of the US non-farm payrolls data – the last big event risk of the week after a round of central bank decisions which broadly weighed on the dollar.

Meanwhile, crude oil prices climbed back above $80 a barrel in the overseas market.

The local unit resumed higher at 46.85/86 per dollar as against the overnight closing level of 47.02/03 per and hovered in a range of 46.74 per dollar and 46.88 per dollar before finishing at 46.80/81, showing a net gain of 22 paise from its previous close.

The rupee had gained by 60 paise or 1.27 per cent in the last three days.

The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.82 and for the euro at Rs 69.64.

Rupee premiums on the forward dollar continued to rule easy on sustained receiving by exporters.

The benchmark six-month forward dollar premium payable in April ended down at 58-60 paise from 58-1/2-60-1/2 paise on Thursday and far-forwards maturing in October also finished lower at 121-1/2-123-1/2 paise from 123-125 paise previously.

In cross-currency trade, the domestic currency declined marginally against the pound sterling but recovered against the euro and the Japanese

yen.

The rupee moved down against the pound to finish at Rs 77.74/76 from its overnight closing level of Rs 77.68/70 per pound, while recouped against the euro to Rs 69.62/64 from Rs 69.81/83 per euro on Thursday.

It also recovered against the Japanese yen to finish at Rs 51.64/66 per 100 yen from its last close of Rs 52.06/08 per 100 yen.