The Indian rupee recovered from a an early fall to end stronger on Tuesday as rising share prices reinforced expectations of higher capital inflows in the coming months. The partially convertible rupee ended at 47.48/49 per dollar, about 0.2 percent higher than Monday's close of 47.555/565.
During trade it hit a low of 47.80, its weakest since May 28, and rose as far as 47.395. "Some banks covered their short rupee positions. Plus, a strong stock market helped sentiment," a senior dealer with a foreign bank said. "The rupee was moving in line with cross-currency movements and the euro's losses to the dollar." One-month offshore non-deliverable forward contracts were quoting at 47.60/70, slightly weaker than the onshore spot rate.