The Indian rupee rose on Wednesday bolstered by dollar supplies from foreign funds buying stocks, but traders were edgy ahead of Federal Reserve Chairman Alan Greenspan's testimony which could give clues on US rates. The rupee ended at 43.5150/5200 per dollar, up 0.06 percent from the previous close of 43.54/5450 and moving towards a near-two-week peak of 43.4975/5075 hit on July 12.
"There are steady foreign fund inflows which pushed the rupee up," said a senior dealer at a foreign bank. "Also, people want to wait and watch to see the dollar's reaction after Greenspan's testimony. Nobody wants to short the dollar or even go long."
Foreign funds have bought more than $5 billion of Indian stocks this year, helping the rupee hold its ground against the rebounding dollar.
The 30-issue BSE index has gained more than 19 percent since the end of April, boosted by foreign funds betting on good corporate earnings in an economy expected to grow 7 percent, despite high prices of oil, India's biggest import.