The rupee was trading marginally strong at 61.35 against the dollar at 4.19 p.m. local time on mild selling of the US currency by exporters and banks.
Forex dealers said besides dollar selling by exporters and banks, the dollar’s weakness against other currencies overseas and a firm domestic equity market, supported the rupee.
After opening strong by 5 paise at 61.32 per dollar against the previous close of 61.37, the rupee hovered in the range of 61.24 and 61.37 in the afternoon trade.
The domestic unit had ended higher on Monday on hopes of key reforms kicking in at a faster pace after the incumbent Government at the Centre looked set to form the Government in two more States. Also, the Government’s decision to regulate diesel prices aided the market sentiment.
Going ahead, the rupee is expected to consolidate at 60.80-61.20 levels during the rest of the week.