Paring early losses, the
rupee on Wednesday gained 19 paise against the US dollar to close at a 13-week high of 49.27/28 amid FII inflows into Indian equities and continued selling of the American currency by exporters.
Forex dealers said dollar was under pressure in the overseas market as well.
The rupee moved between 49.23 and 49.70 against the dollar at the Interbank Foreign Exchange (Forex) market, before closing 19 paise, or 0.38 per cent stronger, at 49.27/28, the highest level since November 4.
Meanwhile, the BSE benchmark index
Sensex closed higher by 107 points at 17,300.58.
Foreign Institutional Investors (FIIs), which sold shares worth $16.09 million on January 30, infused $129.83 million on Tuesday, according to Sebi data.
Persistent dollar selling by exporters and some banks on expectations of further fall the US currency overseas on hopes of the euro to become firm after manufacturing data from Germany, also aided the rupee's value, dealers said.
The dollar index was down by over 0.25 per cent against a basket of currencies today, while New York crude oil was trading above $99 a barrel in the European market.
Analysts said the rupee tracked local bourses and the euro. Stock markets made good gains today on fresh FIIs buying despite opening weak in the morning, they added.
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