The Indian rupee surged further by 30 paisa to 46.50 against the dollar in early trade today on fresh dollar selling by exporters amid firm local stocks and heavy capital inflows this year.
The domestic currency resumed stronger at 46.63/64 a dollar against its last close of 46.80/81 a dollar and later strengthened to a high of 46.50 before being quoted at 46.56/57 a dollar in late morning deals.
Dealers at the Interbank Foreign Exchange (forex) market said exporters sold dollars after the American currency came under pressure in overseas markets.
Dollar fell against a basket of currencies in overseas markets.
The rupee also drew support from heavy FII inflows into equity in the last few months.
Indian benchmark Sensex which had risen by 1.65 per cent during last week, gained 0.50 per cent this morning after the Prime Minister said on Sunday his government would steadily pursue reforms to feed economic growth, while withdrawing the fiscal stimulus by next year.
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(Updated at 1030 hrs)
Extending its gains for the fourth straight day, the rupee strengthened by 20 paise in early trade today at 46.60 against the US dollar on expectations of more capital inflows into domestic equities that may open higher in tandem with other Asian markets.
Dollar's weakness against other currencies also supported the rupee.
At the Interbank Foreign Exchange (Forex) market, the local unit strengthened by 20 paise to 46.60. The Indian rupee ended 22 paise higher at 46.80/81 in the previous session on Friday.
Forex dealers said expectations of continued inflow of foreign funds into local bourses that may open in the positive zone tracking other Asian markets pushed up rupee's demand.
Hong Kong's stock exchange Hang Seng opened firm by 1.10 per cent.
