Rupee rebounds 33 paise against dollar

The Indian rupee on Tuesday recovered by 33 paise to settle at 49.46/47 against the greenback in line with sharp rebound in local equities amid fresh dollar selling by exporters and some banks.

Downward reaction of dollar in overseas market and fresh capital outflows, albeit in small lots, also helped the rupee rise, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened strong at 49.55/56 a dollar from last close of 49.79/80.

It later moved in a range of 49.32 and 49.75 before concluding the day at 49.46/47, displaying a net rise of 0.66 per cent. Yesterday, it had dropped by 48 paise or 0.97 pct.

The Indian benchmark Sensex on Tuesday bounced back by over 330 points or 1.96 per cent after an overnight steep fall of 370.68 points or 2.15 per cent, which mainly supported the rupee.

Fresh dollar selling by exporters and some banks in anticipation of further fall in dollar value overseas after the European leaders signed a fiscal pact aimed at ending huge deficits in the region, promising to stimulate growth and create jobs.