The rupee breached a psychological barrier of Rs 46/$ to close at a near 35-month high of 45.95/96 to the dollar on the back of robust foreign exchange inflows.
The rise was further accelerated in the absence of corporate and interbank demand for dollars, barring intervention by the state-owned banks on behalf of the Reserve Bank of India (RBI).
Dealers said Infosys Technologies, which had recently raised dollars though an issue of American Depository Shares (ADS), had remitted the proceeds home.
The rupee had last closed higher than today