The rupee rose to three-week highs on Monday on hopes of rise in capital inflows following a rebound in Asian stock markets, but dollar buying by oil refiners is seen checking sharp gains.
At 1:54pm, the partially convertible rupee was at Rs48.6350/6450, a shade stronger than Friday’s close of Rs48.67/68.
The BSE benchmark Sensex was up 1.6% in afternoon trade in anticipation of stimulus packages, both in India and in the US.
Stocks in Asia were also higher, while the dollar clung near a one-month high against the yen.
Oil was steady around $40 a barrel on hopes the US would act swiftly to approve an economic stimulus this week outweighed demand concerns.
Government expects its economy to expand 7.1% in the current fiscal year ending 31 March; the slowest pace in six years, but analysts said they expected a downward revision as the global slowdown batters down demand.
