The rupee strengthened for a second day on Wednesday tracking a rise in regional share markets, which could prompt more foreign fund inflows, but the dollar moves overseas would be watched for further cues.
At 9:05 a.m. the partially convertible rupee was at 47.30/32 per dollar, stronger than 47.48/49 at close on Tuesday when it fell as low as 47.80, its weakest since May 28.
Asian stocks were higher at 0335 GMT. The Nikkei was up 1.4 per cent, the Hang Seng rose 1.6 per cent, the Kospi gained 1.9 per cent and the Shanghai Composite index was 0.5 per cent higher.
The MSCI index of Asian stocks outside Japan was 1.9 per cent higher. The Nifty futures traded in Singapore were up 0.3 per cent, indicating a flat to slightly higher opening in the domestic market.
The dollar was little changed against other major currencies after sliding on Tuesday, when investors questioned whether the economy had improved enough to justify talk of a Fed rate hike by year-end.
