Mumbai: The rupee appreciated sharply and was quoted 11 paise higher against the US currency during morning trading on the back of a sharp rally in Asian equity markets and absence of dollar buying.
In a fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 39.5150/5250 a dollar from the previous close of 39.57/58 a dollar and later surge to 39.4560/4650 a dollar in late morning deals.
Forex dealers attributed smart recovery in the rupee value against dollar to a strong rally in equity markets across the globe.
The rupee bounced this morning as equity markets showed stability, dealers said.
Indian benchmark Sensex was up 591 points during morning trade while Asian indices gained about 1.5 to 4% in early trade following an upswing in American stocks Wednesday.