Rupee hits 3-mnth high on better risk appetite

The rupee strengthened on Thursday to its highest level in three months as risk appetite improved after strong manufacturing data from China and India to Germany helped ease worries about the global economy.

At 9:03 am, the rupee was at 49.04/05 to the dollar, after touching 49.00, a level last seen in early November, according to Thomson Reuters data, and stronger than 49.2650/2750 at close on Wednesday.

Asian shares, the euro and crude oil rose as encouraging manufacturing data soothed fears about the global economic fallout from the euro zone debt crisis, with a drop in European government debt yields also supporting sentiment.