The Indian rupee hit a near three-month high on Wednesday, clawing back all early losses, supported by robust dollar inflows, local share gains and a recovery in the euro. The rupee closed at 49.2650/2750 per dollar, rebounding from the day's low of 49.66, gaining 0.4 percent from Tuesday's close of 49.44/45. It touched 49.2350, a level last seen November 8.
"Rupee was supported by dollar inflows and the bounce back of the euro also aided the rupee in recovering the initial losses," said Hari Chandramgathan, a forex dealer with Federal Bank in Mumbai, who expects the currency to strengthen to 49.20 this week.
The one-month offshore non-deliverable forward contracts were at 49.63.
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 all ended around 49.59, on total volume of $4.47 billion.