The rupee maintained its firm trend for the third day in a row in late morning trade by gaining 31 paise to 62.80 per dollar on persistent selling by exporters and banks on the back of weak dollar overseas amidst strong equity market.
Sustained foreign capital inflows into equity market also boosted the rupee value against the dollar, a forex dealer said.
The rupee resumed higher at 62.85 per dollar as against the last weekend’s level of 63.11 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 62.92—62.76 per dollar before quoting at 62.80 per dollar at 10:40 am.
In the New York market, the US dollar dropped against most rivals on last Friday in the wake of weak economic data and dovish testimony from Federal Reserve chairperson nominee Janet Yellen, as investors continued to speculate about when the Fed could begin to reduce its stimulus.
Meanwhile, the Indian benchmark sensex rose by 304.66 points or 1.49 per cent to 20,704.08 at 10:45 am.