MUMBAI: The rupee rose on Wednesday, snapping a two-day fall, boosted by gains in Asian stock markets and the dollar's weakness against some currencies.
At 9:07 a.m., the partially convertible rupee was at 50.20/21 per dollar, above Tuesday's close of 50.52/53. Financial markets will be shut on Thursday and Friday.
The U.S. dollar and the yen were on the defensive on Wednesday as risk aversion eased slightly, lifting high-yielding currencies, though many were cautious ahead of U.S. data and a Federal Reserve meeting.
Foreigners have bought $1.4 billion worth of Indian stocks in April, trimming their net sales in 2009 to under $100 million, and the buying has been a key factor in the rupee's recent gains.
Before Tuesday's fall of 3.25 percent, Indian shares had risen more then 40 percent from their 2009 lows in early March, and the foreign buying since then has helped lift the rupee from a record low of 52.20 per dollar in early March.
Nifty futures in Singapore were up 0.9 percent pointing to a firm start in the local stock market, which should support the rupee.
One-month offshore non-deliverable forward contracts were quoting at 50.75/85 per dollar, weaker than the onshore spot rate.
