MUMBAI -- The Indian rupee rose to a three-month high Thursday, supported by foreign fund inflows into the local equity market and tracking firm Asian currencies.
At 0441 GMT, the dollar was trading at 48.98 rupees, its weakest level since Nov. 04, and down from 49.26 rupees in late Asian trade Wednesday.
The rupee, which was Asia's worst-performing major currency in 2011 weighed by India's wide current account deficit and weakening economic fundamentals, has so far in 2012 risen about 8% against the dollar on the back of foreign fund flows into local equity and debt.
"Indian stocks are very attractive for foreign fund investment and we may see further strength in the rupee on capital inflows," said Sudarshan Bhatt, head of currency trade at Corporation Bank.
The Bombay Stock Exchange's benchmark Sensitive Index is up 1% at 17,480.
Source : online.wsj.com