The rupee was trading strong by 86 paise at 62.62 against the dollar at 255 p.m. local time on heavy capital inflows and dollar selling by banks and exporters.
The domestic unit opened weak at 63.70 per dollar against the previous close of 63.48. However, it strengthened to 62.60 per dollar at 9.26 a.m. on the back of a recovery in the domestic equity market.
The currency market participants will be clued into global developments on September 17-18 when the US Federal Reserve chief Ben Bernanke is likely to announce steps to taper the $85 billion per month fiscal stimulus programme.
Also, the new governor at the Reserve Bank of India, Raghuram Rajan, will make his first monetary policy statement on Friday.
The rupee and other emerging market currencies are likely to remain a little edgy during the week due to the global events, according to market participants.
