Rupee up 2 paise against dollar at 61.69

The currency has gained by 49 paise or 0.8 per cent in four days

The rupee on Tuesday gained two paise against the dollar at 61.69, with banks and exporters selling the US currency amid sustained capital inflows in view of strong equity markets, extending gains for the fourth day in succession.

The rupee resumed lower at 61.82 a dollar as against Monday's closing level of 61.71 a dollar at the Interbank Foreign Exchange (Forex) Market on initial dollar demand. The local currency however staged a comeback with banks and exporters selling dollar on hopes of more foreign capital inflows in view of strong equity market.

The rupee finally end the day's trade at 61.69.It has gained by 49 paise or 0.8 per cent in four days.

Meanwhile, the benchmark BSE Sensex rose by 522.66 points or 1.85 per cent to all-time closing high of 28,784.7. The dollar index was up by 0.2 per cent against a basket of six major global rivals. The benchmark six-month rupee premium payable in June eased to 198-200 paise from 199.5-201.5 paise on Monday, while forward contracts maturing in December finished stable at 396-398 paise.

The Reserve Bank of India fixed the reference rate for the dollar at 61.8 and for the euro at 71.6. The rupee firmed up further against the pound to 93.44 from Monday's close of 93.53 and also hardened further to 52.04 per 100 Japanese yen from 52.60. It also strengthened further to 71.44 a euro from 71.53 a euro on Monday.