Mumbai, February 26: The Indian rupee today rose by a sharp 30 paise at 46.10/11 against the US dollar to snap the three-day fall on signs of increased capital inflows as the stocks rallied by 420 points after Finance Minister Pranab Mukherjee presented a market-friendly Budget for 2010-11.
The rupee sentiment was also helped by Mukherjee’s announcement of increased borrowing in the next fiscal, forex dealers said. They further said there was a mad rush to buy the rupee anticipating a debut supplies flooding the market.
Dollar selling by banks and exporters too boosted the rupee sentiment in morning deals, they added.
Meanwhile, the Indian benchmark Sensex shot up by 175 points or 1.08 per cent lifting the rupee sentiment.
The rupee premium for the forward dollar ended slightly better on sustained paying pressure from banks and corporates.
—Agencies