The Indian rupee climbed to its highest level in 5-1/2 months on Wednesday, tracking the euro's gains against the dollar and as foreign funds stepped up purchases of Indian equities. The partially convertible rupee ended at 44.16/17 per dollar, after touching 44.1425 - its strongest since October 15. It had closed at 44.42/43 on Tuesday.
The one-month onshore forward premium was at 26.25 basis points, down from 27.50 basis points on Tuesday, the three-month was at 79.75 basis points versus 80.00 basis points and the one-year at 301.25 basis points versus 295.25 basis points. The one-month offshore non-deliverable forward contracts were quoted at 44.37, weaker than the onshore spot rate.