The rupee gained for the first time in more than a week as hefty gains in the stock markets raised hopes for foreign capital inflows. The Indian currency was trading at 56.05/06 after rising to 55.95 and below its previous close of 56.80/81.
Traders say custodian banks were spotted selling dollars in the market. The dollar is on course for its biggest quarterly gain versus the rupee in at least 17 years. However, this is also its biggest daily fall since late January.
The euro up sharply against the dollar as European leaders agreed on decisive action to lower the borrowing costs of Italy and Spain and create a single supervisory body for euro banks.
