Reuters Market Eye - The rupee rises further in the afternoon session to trade at 53.66/67 versus its previous close of 54.09/10. The rupee rose to a high of 53.63, its highest since February 11.
Traders say optimism for a fiscally disciplined 2013/14 budget on Thursday prompting dollar selling.
The Sensex also trading up nearly 1 percent.
A broad risk rally in global markets following solid U.S. data and the Fed's continued support to easy monetary policy also hurting the dollar.
Month-end dollar demand from oil firms however capping slides in the pair.
(Reporting by Swati Bhat)
