RTRS: Indian rupee rises as stocks rally, fwd dlr sales
* Unwinding of NDF positions helps rupee rise
* Gains in stocks raise expectations of fresh inflows
* Change in rupee trend only temporary, say traders (Updates to close)
By Swati Bhat
MUMBAI, Dec 10 (Reuters) - The Indian rupee strengthened past 49 per dollar on Wednesday for the first in more than three weeks, boosted by a stocks rally and dollar selloff in offshore forwards.
The partially convertible rupee closed at 49.03/04, 1.1 percent stronger than its previous close of 49.58/59. It rose as much as 48.88, which was its strongest since Nov. 17.
"The rupee rallied today as stocks were positive and there was some non-deliverable forwards (NDF) related dollar selling seen," said the chief dealer with a state-run bank.
"The rupee's direction will now depend on the flows and movement in NDF but the dollar-rupee may not go below 48.50. So a broad range of 48.50-49.50 would hold for some time," he added.
Indian shares .BSESN rose 5.4 percent to their highest close in a month, led by Reliance Industries (RELI.BO: Quote, Profile, Research) as foreign funds picked select blue chips, but investors remain worried by a deteriorating economic outlook. See [.BO]
