Mumbai: The rupee was strong in afternoon trade on Wednesday comforted by gains in domestic equities and the euro, although dollar demand for likely defence related payments and from oil companies kept gains in check.
At 2:10 pm, the partially convertible rupee was at 49.22/23 per dollar, stronger than 49.29/30 on Tuesday.
The local benchmark share index was up more than 1.4% and the euro was at $1.3817, down from the day’s high of $1.3840 but higher from $1.3699 at end of rupee trade on Tuesday.
The index of the dollar against six major currencies was at 76.845 points, sharply below 77.314 on Tuesday.
European stocks and the euro rose on Wednesday, on optimism policymakers will take major steps at a summit this weekend to solve the festering debt crisis and offsetting the impact from a cut to Spain’s sovereign credit rating.
Oil is India’s biggest import item and domestic oil refiners are the largest purchasers of dollars in the local currency market.