The Indian rupee was trading stronger in afternoon session on Tuesday aided by some gains in the euro but seesawing domestic shares limited a sharp rise in the domestic currency.
At 3:30 p.m., the partially convertible rupee was at 45.16/17 per dollar, compared with 45.23/24 at close on Monday. "The euro seems to be rebounding, so rupee edging up as well. But there is no clear momentum as such, as shares were very choppy and there is no clarity on the euro zone solution yet," a senior dealer with a state-run bank said.
The euro crept up from a two-month low against the dollar on Tuesday as some investors looked to capitalise on its recent fall, but rallies were shallow due to fears the euro zone's debt crisis could spread.
