Rupee scales seven-week peak

The Indian rupee strengthened against the US currency to a seven-week high on Wednesday, tracking Asian peers as the dollar index gave up gains and local equities remained resilient.

The rupee finished at 81.7650 per dollar compared with 81.9125 in the previous session. The currency rose up to 81.6950 during the day, its strongest level since March 6.

Both foreign banks and state-run banks offered dollars at around 81.90, but it was unclear whether it was related to a corporate inflow, two private bank traders said. It's possible that the Reserve Bank of India's absence allowed a further move in the rupee, traders added.

"The rupee is expected to gain further as it has broken 81.80," said Anil Bhansali, head of treasury at Finrex Treasury Advisors, as the currency had found strong resistance near that level recently.