Mumbai: The Indian rupee hit its highest level in four weeks on Wednesday afternoon tracking gains in the domestic sharemarket on the back of a return in risk appetite globally and also boosted by gains in other regional peers.
At 2:10pm, the partially convertible rupee was at Rs46.38/39 per dollar, after hitting Rs46.2850, its strongest since 20 May and stronger than Tuesday’s close of Rs46.55/56.
The rupee’s gain was in line with regional peers which also rose against the dollar.
The euro briefly hit a two-week high on Wednesday, aided by improved risk tolerance after a strong rally in US equities, though the move lacked momentum required to tackle nearby resistance.
The index of the dollar against six major currencies was up 0.3% and would be watched for cues, dealers said.
Indian shares rose above 17,500 for the first time since early May in early trade, with financials leading the rise, taking cues from strong world markets.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs46.4425, with the total traded volume on the two exchanges at about $3.7 billion.