Mumbai: The rupee gained in afternoon trade on Friday as shares rose over 1.5% after a choppy start, while a rally in other Asian currencies versus the dollar also underpinned sentiment.
The partially convertible rupee was quoted at Rs49.76/77 per dollar, at 1:45pm, off an early low of Rs50.0425 and stronger than its previous close of Rs49.92/94.
The Malaysian ringgit led a broad Asia currency rally on Friday amid optimism about the global economy, while the Singapore dollar rose as investors moved to cut their long US dollar holdings.
Indian shares recovered from an unsteady start and extended gains to over 1% by afternoon, riding a wave of investor optimism there was limited downside to the market.
The dollar index, a guage of the US unit’s performance against six majors, was down 0.5%.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at Rs49.7850 and Rs49.7900 respectively, with the total traded volume on both exchanges at about $682 million.