Mumbai: Continuing its rally for the third day in succession, the rupee on Monday improved by another 30 paise to close at 50.04/05 against the greenback on stronger equity markets amid expectations of increased capital inflows.
However, dollar demand from oil refiners and short coverings by exporters pared early smart gains.
In active trade at the forex market, the domestic unit resumed higher at 49.95/97 a dollar from its previous close of 50.34/35 a dollar and later hit a high of 49.88 on firm equity markets.
More India business stories
But, it fell to a low of 50.15 before concluding the day at 50.04/05, still higher than the last close. In the straight three-session rally, the rupee has spurted by a total 114 paise or 2.23 per cent. Dealers said the bullish stock markets raised optimism about continued capital inflows into the equity markets.