The Indian rupee rose to its highest in slightly over a month on Tuesday, as expectations of low US interest rates drove the dollar lower overseas and triggered selling from domestic exporters. A rise in local share prices also supported sentiment and reinforced expectations of more capital inflows into Asia's third-largest economy in the coming months.
The partially convertible rupee ended at 46.16/17 per dollar, off an intraday peak of 46.10, its highest since June 28 and about 0.2 percent higher than its 46.24/25 previous close. One-month offshore non-deliverable forward contracts were quoted at 46.31, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX ended at 46.3550 and 46.3575 and total traded volume on the two exchanges at about $4.2 billion.