Extending its rally for the second consecutive day on Monday, the rupee gained 14 paise against the US dollar to close at 46.47/48 on sustained dollar selling amid a firm trend in domestic bourses.
The rupee drew support from weakness in dollar against other major global currencies.
The local unit moved in a range of 46.41 and 46.59 after resuming firm at 46.50/51 a dollar against its last close. Dealers at the Interbank Foreign Exchange (forex) market said the local rupee rose as exporters sold the US currency after it fell to nearly six-week low in overseas markets.
The American currency dropped to its recent lows against a basket of global currencies during the day after the US Fed's comments led to expectations that the US monetary policy may remain slack for a long period.
Federal Reserve president James Bullard on Sunday said the apex bank should keep alive its mortgage-related asset buyout programme beyond a planned end date to help stimulate the economy.
The rupee's upward movement was further propelled by a strong equity market, which saw the BSE benchmark Sensex end higher by 158.33 points or 0.93 per cent on the back of strong global cues.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.49 and for the euro at Rs 69.43.
Rupee premiums on the forward dollar ended higher on fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in April ended higher at 56-1/2-58-1/2 paise against 54-1/2-56- 1/2 paise on last Friday and far-forwards maturing in October also finished higher at 118-119 paise compared to 114-1/2/116 paise previously.
In cross-currency trade, the domestic currency declined against the pound and euro but firmed up against yen. The rupee fell against the pound to finish at Rs 77.25/25 per pound from the last weekend's level of Rs 76.93/95 per pound and also moved down against the euro to end at Rs 69.60/62 per euro from Rs 69.32/34 per euro previously.
Source : ndtv.com