The Indian rupee set an 11-week closing high against the dollar for the second straight day on Thursday, buoyed by strong foreign capital flows, and traders said more gains were in store for the local currency.
The rupee ended at 45.3050/3100 per dollar, firmer than Wednesday's previous 11-week peak of 45.3400/3500.
The local currency last closed higher at 45.2850/2900 on November 10 last year.
The rupee was pulled off an intra-day peak of 45.2925 by state-run banks, which bought dollars on behalf of the Indian central bank.
Rupee premiums on forward dollars slid back from the previous session's near four-month highs, as concerns about a cash-dollar shortage resurfaced, prompting buy-sell swaps by some banks. The annualised premium on the benchmark six-month forward ended below one percent, down 16 basis points at 0.90 percent.