The rupee today recovered by 11 paise to settle at 49.01/02 against the US currency following smart rise in local stocks and weakness in dollar overseas.
Fresh dollar selling by exporters amid increased capital inflows too helped the rupee to rebound, dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced lower at 49.18/19 a dollar from previous close of 49.12/13 and immediately touched a low of 49.22 due to early hesitancy in equities.
Continued dollar demand from importers too initially weighed on the rupee value.
However, smart rise in local stocks after morning session and emergence of dollar selling by exporters later helped the rupee bounce back to a high of 48.98 before concluding at 49.01/02, a rise of 0.22%.
The BSE benchmark Sensex today closed higher by 198.77 points, or 1.18%.
The dollar index, indicator of six major currencies, was down by nearly 0.1% while New York crude oil was trading below USd 86 a barrel in European market today.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "Rupee ended strong by almost quarter%, as local equities closed up by over one%. Globally, dollar also weakened against major currencies which helped Rupee to perform. Strong support is seen at 48.75 and the trading range for USD/INR will be 48.80 to 49.40 Monday."
