The Indian rupee rose in late trade on Wednesday as exporters sold the dollar to cash in on their holdings of the US unit, but a weak domestic share market prevented a sharper rise. The partially convertible rupee closed at 49.11/13 per dollar, 0.2 percent stronger than Tuesday's close of 49.20/22.
"There is still some good resistance at 49.25 and so there is some dollar selling interest at those levels. If the dollar further appreciates against the majors, then the rupee would depreciate and test 49.60-49.95 levels soon," said L. Subramanian, chief dealer at ICICI Bank. The rupee is down 0.8 percent this month, after having fallen 19.1 percent in 2008. One-month offshore non-deliverable forward contracts were at 49.32/42, suggesting a weak outlook for the local unit.