The Indian rupee rallied on Tuesday, snapping a four-session losing streak, buoyed by strong gains in local stocks and dollar sales by exporters. The strong recovery in the rupee comes after the rupee fell 2.8 percent over the previous four sessions as worries about the global economy pummelled risk assets world-wide.
"The stock markets are looking up and exporters came in and sold mid-session," said N.S. Venkatesh, treasury head at IDBI Bank.
The partially convertible rupee closed at 55.39/40 as per the SBI closing rate, up nearly 1 percent from its Monday's close of 55.92/93.
The one-month offshore non-deliverable forward contracts were quoted at 55.68 while the three-month were at 56.32.
In the currency futures market, the most traded near-month dollar-rupee contract on the National Stock Exchange, the United Stock Exchange and the MCX-SX all ended at around 55.5750. The total volume was at $4.4 billion.