Extending gains for the second day in a row, the rupee on Wednesday soared by 32 paise to 48.75/76 against the U.S. currency on dollar selling by exporters and some corporates as the greenback weakened in overseas markets.
Fresh capital inflows too helped the rupee rise despite weak equities, dealers said.
Heavy dollar selling by exporters and some corporates on hopes of further fall in dollar value in anticipation of early solution to resolve the european debt problems, boosted the rupee sentiment, they added.
The euro was trading nearly one-week high against the dollar.
At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 49.14/15 a dollar from its last close of 49.07/08. It declined further to a low of 49.25 on weakness in local stocks in late morning deals.
The rupee concluded at 48.75/76, a rise or 0.65 per cent.
“The rupee traded strong against the dollar and appreciated by over half per cent, taking cues from global markets where dollar traded weak against the major currencies.
Weak local equities capped the rupee gain,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
The dollar index was down by nearly 0.3 per cent against its major rivals while New York crude oil was trading above USD 84 a barrel in European market today.