Rupee hits three-week high, rises 6 paise at 46.39 a dollar

Continuing with its rising streak for the fifth day, the rupee appreciated by 6 paise in early trade on Tuesday to hit a three-week high at 46.39 against the US dollar, supported by firming Asian stocks. However, dollar demand from oil refiners, restricted gains.

At the Interbank Foreign Exchange (Forex) market, the local unit strengthened by 6 paise to 46.39, highest since October 21. Yesterday, the Indian rupee ended 35 paise higher at 46.45/46.

Forex dealers said expectations of more capital inflows by foreign funds into local markets, which are likely to move upwards in tandem with other Asian markets, supported the Indian rupee.