Mumbai: The rupee on Monday strengthened by 38paise against the US dollar in early trade on hopes that stocks may open notably higher after government’s second booster package for the somnolent economy and cut in key interest rates by the Reserve Bank of India on Friday.
Surging Asian markets, too, supported the Indian rupee.
At the Interbank Foreign Exchange (Forex) market, the domestic currency traded higher at Rs48.20 against the greenback, a rise of 38paise over the previous close of Rs48.58/60 a dollar.
The rupee had gained 18paise at Rs48.58/60 in the previous trading session.
Forex dealers said increased capital inflow by foreign funds in anticipation of rally on the domestic stock markets, after the government announced a slew of measures in its second stimulus package and the RBI cut key interest rates to revive the sagging economy, and firming trends in other Asian markets also supported the Indian rupee.