Mumbai: The Indian rupee extended gains in afternoon trade on Wednesday, rising for a second consecutive session, as higher local shares renewed hopes for more capital inflows while rise in Asian units also boosted sentiment.
At 2:25pm, the partially convertible rupee was at Rs48.66/67 per dollar, stronger than Tuesday’s close of Rs48.96/97. On Monday, the rupee had dropped to as low as Rs49.47, its weakest since 15 May.
The main stock index rose more than 2% in afternoon trade.
Foreigners have purchased a net $5.8 billion worth of local stocks in 2009, after having sold more than $13 billion last year. The inflow has been key to the rupee’s recovery from a record low of 52.2 hit in early March.
The South Korean won and Malaysian ringgit led Asian currencies firmer on Wednesday after a slew of strong US corporate earnings boosted appetite for riskier assets and hopes of a global economic recovery.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at Rs48.7150 and Rs48.7175 respectively, with the total traded volume on the two exchanges at about $965 million.