The rupee strengthened 0.3% to close at 50.005 per dollar.
Rupee rose for a second day as gains in global stocks indicated that steps taken by central banks worldwide to ease the credit crisis may be strengthening investor's confidence.
Rupee climbed by the most in a week as SEBI data showed that FIIs bought domestic shares worth total US$142mn more than they sold on Nov. 28 and Dec. 1. Sensex snapped a two-day loss as the MSCI Asia Pacific Index of stocks jumped 1.2%.
The rupee strengthened 0.3% to close at 50.005 per dollar, according to the reports.
Six of the 10 most-traded Asian currencies outside Japan gained today. The rupee has lost 1.2% since terrorists attacked Mumbai on Nov. 26.
The Federal Reserve yesterday extended the terms of emergency loan programs to ease the credit crunch, following an interest-rate cut by the Reserve Bank of Australia and a pledge by the Bank of Japan that it would accept lower-grade corporate debt as collateral for loans.
Offshore forward contracts show traders scaled back bets for how far the rupee will weaken in the next month. Non-deliverable contracts showed an implied rate of Rs50.40 to the dollar Vs 51.65 yesterday.
