The rupee continued to trade near its highest level in more than a week on Monday afternoon tracking gains in domestic shares with traders watching the dollar's moves against major currencies for further direction.
At 1:45 p.m., the partially convertible rupee was at 44.32/33 per dollar after hitting 44.28, its highest since April 15 and stronger than Friday's close of 44.4350/4450.
"Positive risk sentiment spurred by the activation of the aid package structured for Greece is likely to support all all emerging market assets including the INR," economists at HDFC Bank said in a note. "We expect the USD/INR pair to continue to head lower but expect strong resistance around the 44.20 levels," they added.
Dealers said demand for dollars from oil firms to meet month-end demand was limiting a further rise in the rupee.
