Indian rupee turned stronger by 32 paisa after a two-day losing streak and hit a two-week high of 48.40 against the greenback in early trade today on hopes of increased capital inflows in the buoyant equity market.
The domestic currency also drew support from signs of recovery in economy and dollar eased further in overseas markets this morning.
In quiet trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 48.52/54 a dollar from its last weekend's close of 48.72/73 a dollar and later hit 48.40 level before being quoted at 48.48/50 a dollar in late morning deals.
Forex dealers said rupee turned stronger against dollar as local stocks surged past the psychological 15K level this morning.
The rupee also drew support from weakness in dollar overseas and absence of dollar buying by importers.
Global oil prices were trading above $63 a barrel level in Asian trade today.