The Indian rupee on Thursday jumped by a whopping 62 paise to a near three-week high of 50.68/69 against the American currency in late morning deals on the back of heavy dollar selling amid firm equity markets.
In active trade at the Interbank Foreign Exchange (Forex) market, the local unit resumed sharply higher at 51.04/05 a dollar from Wednesday's close of 51.30/31 and improved further to quote at 50.68/69 a dollar, the level not seen since February 27. On Wednesday it was up by 19 paise.
Expectations of more capital inflows after two days of net buying by foreign funds and weak dollar overseas also helped the rupee rally for the second straight day, a forex dealer said.
Foreign Institutional Investors (FIIs) pumped in $110.10 million on March 17 while they were net buyers on March 18, according provisional data.
Dollar selling by banks and exporters in anticipation of further fall in the greenback boosted the rupee sentiment, he added.
Another rise of 73 points in the Indian benchmark Sensex at 1030 hours on Thursday too gave support to the rupee. Asian indices were trading steady to firm with upward bias in late morning deals on Thursday.