The Indian rupee closed at a seven-week high on Monday as the strength of the Japanese yen and Chinese yuan prompted traders to unwind long dollar positions.
The partially convertible rupee ended at 46.34/35 against the dollar, 0.4 percent higher from its previous close of 46.5150/5250. It hit an intra-day high of 46.2750.
The yen climbed against the US currency as solid capital spending data was seen increasing chances of another rate rise in Japan this year. The yuan set a post-revaluation high as the central bank largely stayed out of the market.
The rupee has gained 1.5 percent from a three-year low of 47.04 hit on July 19.
"We saw some good inflows today and possibly corporates and importers unwound long dollar positions," said a dealer with a foreign bank, adding that the currency could trade in a 46.30-46.50 level over the next few days.
ABN Amro Bank, in a research note, said the immediate resistance for the rupee was 46.25. If it broke that level, it would face the next stop at 45.92 in the short-term. Dealers said factors such as easing oil prices and firmer stock market also supported the rupee.
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