The Indian rupee continued its upward march for the sixth consecutive day and breached the crucial 47-level against the US currency for the first time after December 19, 2008, on sliding dollar in the overseas markets.
The rupee also drew support from encouraging trend in the local stocks and continued optimism about faster reforms in the financial sector paving the way for increased capital inflows.
At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed stronger at 47.15/20 a dollar from its previous close of 47.37/38 a dollar and later hit a five-month high of 46.98 against the American currency.
It, however, pared gains and was quoted at 47.14/15 a dollar in late morning trade.
Forex dealers said weak dollar overseas provided a fresh impetus to the Indian currency.
The dollar fell to its recent lows against the basket of currencies on fears about the US losing the AAA rating.
They said the rupee trimmed its gains due to some dollar buying by banks, probably on behalf of oil companies.