Mumbai: The Indian rupee pared gains in afternoon trade on Wednesday as shares came off earlier highs and fell more than 1%, but gains in other Asian units against the dollar underpinned sentiment.
At 1:55pm, the partially convertible rupee was at Rs50.30/31 per dollar, off an earlier high of Rs50.05, but still stronger than its previous close of Rs50.43/44.
Indian shares rose over 1% early on Wednesday, but were trading down 1.3% as there was sporadic profit booking after the recent market rally.
Stocks rallied by more than a third over six weeks to mid-April, helping lift the rupee from a lifetime low of 52.20 hit in early March.
Most Asian currencies were higher against the dollar, which dealers said was helping rupee sentiment.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at Rs50.32 and Rs50.33 respectively, with the total traded volume on both exchanges at about $735 million.