MID: Rupee up 90 paise at 48.50 against USD in early trade
The Indian rupee on Monday strengthened by 90 paise to touch a three-month high of 48.50 against the US dollar in early trade on expectations of sustained capital inflows by foreign funds as equity markets may open on a strong note on the outcome of the Lok Sabha polls.
At the Interbank Foreign Exchange (Forex) market, the local unit, which ended 37 paise higher at 49.40/42 a dollar on Friday, moved up by 90 paise as local stocks are expected to rally on the prospects of a stable government after Congress-led UPA's victory in the general elections.
Forex dealers said equity markets are expected to open sharply higher as foreign funds are expected to inject more funds into Indian bourses, triggered by political stability after UPA's victory in the elections.
