Mumbai: The rupee remained strong in afternoon trade on the back of a pick-up in dollar inflows from corporate borrowings before the financial year ends on Thursday.
At 1:51pm, the partially convertible rupee was at Rs 44.7050/7075 per dollar, 0.3% stronger than Monday’s close of 44.83/84.
Firmer shares and a revival in foreign fund inflows also underpinned the rupee, but oil import payments kept a lid on the gains, traders said.
Shares rose for the sixth straight session on Tuesday as attractive valuations spurred investor buying following a weak showing so far this year.
Traders said the rupee could appreciate to 44.64 levels during the day.
The index of the dollar against six major currencies was down 0.18% at 75.991 points.
The one-month onshore forward premium dropped 2 points to 28, the three-month premium fell 2.5 points to 83 and the one-year was at 296.00 points from 301.
The one-month offshore non-deliverable forward contracts were quoted at 44.98, weaker than the onshore spot rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 44.9825, with the total volume at about $4.5 billion.