The Indian rupee shot up by 35 paise to Rs 45.80 per US dollar in early trade today on fresh selling of dollars by banks and exporters amid hopes of a resumption of capital inflows.
In tandem with a rally in the equity market, the rupee resumed higher at Rs 45.95/96 per dollar on the Interbank Foreign Exchange vis-a-vis last weekend's close of Rs 46.15/16 per dollar and shot up further to Rs 45.80 per dollar before quoting at Rs 45.81/82 per dollar at 1030 hours.
Selling of dollars by banks and exporters on hopes of a resumption of capital inflows in view of the sharp recovery in the equity market mainly boosted the rupee value against the dollar, a forex dealer said.
The Bombay Stock Exchange benchmark Sensex shot up by 352 points, or 2.22%, in early trade today.