Rupee surges 23 paise to 3-week high of 61.97

Good foreign capital inflows also helped the currency maintain its gains at closing

The rupee extended its gains against the US dollar for the second consecutive day, surging 23 paise to end at nearly a three-week high at 61.97 a dollar on Wednesday on Budget optimism and sustained dollar selling by banks. Good foreign capital inflows also helped the rupee maintain its gains at closing, forex traders said.The rupee resumed higher at 62.06 to a dollar against Tuesday's closing level of 62.20 at the Interbank Foreign Exchange Market. It further firmed up to 61.95 on sustained selling of dollars before ending at 61.97, showing a gain of 23 paise or 0.4 per cent.

The local currency has mow gained by 34 paise or 0.55 per cent in two sessions.

The closing value of the rupee is near three week highs. It had ended at 61.69 per dollar on February 6, 2015.

Pramit Brahmbhatt, Veracity Group, CEO said, "The optimism over the upcoming Budget influenced trading sentiments and helped indices to trade strong during the day which supported the upward movement of the rupee. The trading range for the spot USD/INR pair is expected to be within 61.60 to 62.40.