The Indian rupee was up by 27 paise at Rs 46.95 per US dollar at 1030 hours today on fresh selling of the American currency by banks and exporters amid a firming trend in the equity market.
The rupee resumed higher at Rs 47.11/12 per dollar on the Interbank Foreign Exchange, as against its previous close at a nearly 14-month low of Rs 47.22/23 per dollar, and then moved up further to Rs 46.95 per dollar before quoting at Rs 47.02/03 per dollar at 1030 hours.
Forex dealers said banks and exporters were reducing their dollar exposure on expectations of renewed foreign capital inflows into the domestic equity market amid growth worries in the US and debt concerns in the euro zone.
The Bombay Stock Exchange benchmark Sensex was up by 198 points, or 1.20%, in early trade today.
In New York, the euro pared losses against the US dollar yesterday and came off a decade-low against the Japanese yen as traders took stock of developments surrounding debt-stricken Greece.