Rupee rebounds sharply against dollar

Moving in line with the equity market, the Indian rupee recovered sharply - up 41 paise at 49.60 - against the US dollar due to selling of the American currency by banks and exporters in view of its weakness in the overseas market.

The rupee resumed higher at 49.85/86 per dollar at the Interbank Foreign Exchange (Forex) market as against the last weekend's level of 50.01/02 per dollar. It moved up further to 49.60 per dollar before quoting at 49.90/91 at 1030hrs.

The domestic currency moved in a range of 49.60 to 49.95 per dollar during the morning deals.

Banks and exporters preferred to reduce their dollar position in view of lower dollar in overseas market, a forex dealer said.

In the New York market, the US dollar fell further against the euro and the other major currencies last Friday, after dropping sharply to a record low against the Japanese yen. Analysts attributed the dip to market hitting key levels that led to the selling of the greenback.