The rupee spurt 67 paise to Rs. 48.83 against the US dollar in early trade on the Interbank Foreign Exchange on Friday, supported by euro gains against the American currency and a sharp rise in the domestic equities market.
The dollar faced heavy losses in Asia, having seen its biggest decline in more than two years against a basket of major currencies after European leaders agreed on a deal to resolve debt crisis in Greece, raising hopes that it would contain the fallout on other euro-zone nations.
Dealers said dollar weakness against the euro and other currencies overseas and the gains recorded by domestic bourses in early trade helped strengthen the rupee.
The rupee had closed 32 paise up at Rs. 49.50/51 against the US currency in Tuesday’s trade on smart rise in local stocks and weakness in dollar overseas.
Meanwhile, the BSE benchmark Sensex rose 619.30 points, or 3.58 per cent, to 17,908.13 in opening trade today, on heavy buying by foreign funds.