Mumbai, May 28: The rupee today shot up by a whopping 94 paise, or nearly 2 per cent, against the US dollar on the back of smart rally in equities and the US currency weakening in overseas markets.
Dealers said exporters frantically sold dollar after its recent smart rise which boosted the rupee sentiment. The dollar was weak against its major rivals abroad, they added.
The euro rebounded as investors preferred to unwind their short positions ahead of the month-end, dealers pointed out.
The recent extreme risk aversion stemming from eurozone debt concerns eased helping the euro gain strength.
A smart recovery in equities might brought back capital inflows to the domestic market, according to dealers.
The rupee today resumed remarkably higher at 46.71/72 after a day’s break yesterday at the Interbank Foreign Exchange (Forex) market.
It moved in a range of 46.78 to 46.30 before settling at 46.
–Agencies