The rupee rose on Thursday as buoyant global stock markets raised expectations of more capital inflows into Asia's third-largest economy and the euro's gains overseas triggered dollar sales by exporters.The partially convertible rupee ended at 46.8525/8625 per dollar, off an intraday peak of 46.75 and about 0.30 percent stronger than Wednesday's close of 47.015/025, when it had touched 47.1550, the lowest since June 9."There is now an improved risk appetite after the Dow Jones index rallied and closed above the 10,000 level," said a senior trader with a private bank in Mumbai. A trader at a foreign bank said he expects the rupee to trade in the 46.75-46.95 range on Friday.Global stocks rose on Thursday on expectations of strong corporate earnings, with Wall Street posting its best one-day gain in about six weeks on Wednesday. According to Thomson Reuters data, quarterly earnings of S&P 500 companies are expected to rise 27.1 percent in the second quarter after surging 58.3 percent in the first quarter.India's benchmark BSE share index ended more than a percent higher, supported by the global rally in shares. Foreign funds have bought around $6.9 billion of local shares so far in 2010, after pumping in $17.5 billion in 2009.The euro's gains against the dollar also underpinned sentiment. The single currency hit a two-month high against the dollar after strong Australian jobs data boosted higher-risk currencies.The dollar index was up about 0.1 percent at the time of the local market's close.The European Central Bank kept its main interest rate on hold at a record low of 1.0 percent on Thursday, in line with market expectations.One-month offshore non-deliverable forward contracts were quoted at 47.03, weaker than the onshore spot rate.In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX ended at 46.9975 and 46.9875 respectively, with the total traded volume on the two exchanges at $5 billion.(Editing by Surojit Gupta)News posted by www.newsinfoline.com
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