The Indian rupee rose on Tuesday on capital flows into local stocks and debt, with investors' risk hunger improving as worries over Greece's debt crisis eased. "Despite the volatility in equities, foreign investors have been net buyers. We could therefore see rupee should move towards 48.70," said Ravi Kumar, manager foreign dealer at Canara Bank.
The rupee ended at 49.0750/0850 to the dollar, up from Monday's close of 49.2150/2250. It moved in a band of 49.0300 to 49.2125 during the session. One-month offshore non-deliverable forward contracts were at 49.54. 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 49.47, on a total volume of $2.23 billion.