The Indian rupee posted its biggest single-session rise in a month on Monday as a rally in local shares raised hopes foreign funds were returning, while traders expect the gains to be temporary on caution due to the eurozone debt crisis. The partially convertible rupee ended at 51.9550/9650 per dollar, 0.5 percent stronger than Friday's close of 52.23/24 - its biggest percentage rise since October 28. It touched an intra-day high of 51.8650, tracking a strong euro.
The one-month offshore non-deliverable forward contracts were quoted at 52.26. The one-month onshore forward dollar premium was at 27.50 points from 26 on Friday, the three-month was at 63 points from 58 and the one-year premium was at 162 points, from 147.75.