The Indian rupee today soared by 41 paise against the dollar on anticipation of heavy foreign capital inflows as stock market may open higher in tandem with other Asian markets.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted at 47.51 a $ in the opening trade, a rise of 41 paise over the previous close.
Rupee had nosedived by 64 paise to close at 47.92/93 yesterday, its biggest fall in almost three months.
Dealers said expectations of a surge in the domestic stock markets in line with other firming Asian markets leading to capital inflows strengthened the rupee sentiments.
However, month-end $ demand from importers and refiners capped the rupee's gains to some extent, they added.
The Asian equity markets rose by up to 3.7% in the morning trade today.