MUMBAI: The Indian rupee extended the previous session's gains, but not with a lot of conviction.
Global cues overnight have been encouraging, with Spain's successful attempt at selling debt and improved U.S. corporate earnings helping risk sentiment.
The problems are to be found at home, traders said.
The surprisingly big cut in the repo rate on Tuesday from the Reserve Bank of India is seen as a short-term positive, but foreign investors still worry about inflation, a yawning current account gap and fiscal indiscipline from New Delhi.
At 9:20 a.m. (0351 GMT), the rupee was at 51.41/42 to the dollar, stronger than Tuesday's close of 51.48. The currency is still not too far off the three-month low of 51.72 hit on Monday.
Source : economictimes.indiatimes.com