The Indian rupee trimmed early gains of more than 1 percent on Tuesday, after the stock market seesawed as investors locked in profits following a 17.3 percent surge in the previous session.
At 10:32 a.m. (0502 GMT), the partially convertible rupee was at 47.48/50 per dollar, 0.8 percent stronger than its Monday's close of 47.88/90.
It rose as high as 47.27 in early trade, its strongest since Dec. 19, at which point it was up 10.4 percent from its record low of 52.2 in early March.
The rupee had surged 3.2 percent on Monday, its biggest single-day rise since Jan. 19, 1998, after the ruling coalition won a comfortable victory in national elections, boosting hopes for speedier economic reforms and higher foreign investment.
"There was heavy profit-taking in the sharemarket, so people started covering their short dollar positions. Stocks are very volatile, so even the bid-ask spreads in the forex market are very wide," a senior dealer with a private bank said.
"The rupee should most likely trade in a 47.30 to 47.80 band today, with a break possible on either sides," he said.
The main stock index .BSESN was up 0.7 percent after falling more than 3 percent early, but trade was volatile after the euphoria caused by the election win.
