Indian rupee extended gains in late trade Monday, thanks to combinations of local stocks surge and dollar weakness against major currencies abroad.
The partially convertible rupee was seen trading at 48.18 per dollar at 4.15 p.m, its strongest since July 6 and 1.1 percent stronger than its Friday's close of 48.73 per dollar.
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Benchmark BSE sensex surged in later session and rose by nearly three percent to their highest close in 5 weeks as a last-minute rescue of troubled U.S. lender CIT Group and a raft of positive corporate earnings from across the globe fuelled investor appetite for riskier bets.
However analysts said any further rise for the local unit was prevented by dollar demand from oil companies
The dollar fell broadly on Monday, hitting a six-week low against the euro as traders flocked to riskier assets as speculation for solid corporate earnings boosted share prices.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at 48.2350 each, with the total traded volume on the two exchanges at about $1.45 billion.
