The Indian rupee strengthened on Tuesday, tracking gains in domestic equities and the euro's recovery, with the market now focusing on a eurozone leaders meeting on Thursday where they will try to agree on a second rescue package for Greece.
The partially convertible rupee ended at 44.49/50 per dollar, 0.2 percent stronger from Monday's close of 44.585/595. Intraday, the unit moved in a band of 44.4800 to 44.5950.
The one-month onshore forward premium was at 24.50 points from 25 points on Monday, while the three-month was 70 points from 69.75 points and the one-year was at 227.25 points versus 229.50.
One-month offshore non-deliverable forward contracts were quoted at 44.72, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were at 44.5650, 44.5675 and 44.5700, respectively. The total volume was at $8.81 billion.