The Indian rupee extended its post-election rally on Tuesday but ended off a five-month high hit in early trade due to suspected central bank intervention to stem its rise and a flat close in the stock market. The partially convertible rupee ended at 47.75/77 per dollar, 0.3 percent stronger than Monday's close of 47.88/90, to be 9.3 percent above a record low of 52.2 hit in early March.
It had risen to 47.27 in early trade, its strongest since December 19. The rupee had surged 3.2 percent on Monday, its biggest rise in more than 11 years, after the ruling coalition won a comfortable victory in national elections, boosting hopes for economic reforms and higher foreign investment. "The euphoria has gone after stocks erased gains," a senior dealer with a state-run bank, said, adding that there was some dollar demand from oil companies also. One-month offshore non-deliverable forward contracts were quoting at 47.80/90, slightly weaker than the onshore spot rate.
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