The Indian rupee recouped early losses on Thursday as a strong rise in the share market boosted hopes net foreign buying of stocks of $900 million so far this month could be sustained and increased. The partially convertible rupee ended at 49.92/94 per dollar, well off an early low of 50.45 and about 0.8 percent stronger than its Wednesday's close of 50.33/34.
"Today's rally has raised confidence for the rupee. If the rally sustains, rupee could break 49.60 level on Friday," a dealer with a state-run bank, said. One-month offshore non-deliverable forwards were quoting at 50.11/21 per dollar, weaker than the onshore spot rate.