Mumbai, May 25 - Extending gains for the second day in a row, the Indian rupee today appreciated by another 27 paise to close at 55.38 against the Greenback on sustained dollar selling by exporters on fears intrusion by the central bank amid stable local stocks.
Weak dollar overseas amid sustained capital outflows also helped the rupee rally, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 56.00 as against previous close of 55.65 on dollar buying by importers, mainly oil refiners, to meet their month-end requirements.
However, dollar selling by exporters on hopes of further fall in dollar value overseas aftEr data showed stabilizing consumer confidence data in Germany, the euro zone's biggest economy. The dollar inded, a gauge of six major currencies, was down by nearly 0.23 per cent in European market today.
The rupee, later moved in a range of 56.08 and 55.24 before concluding at 55.38, showing a rise of 0.49 pct.
The Indian benchmark sensex today ended nearly flat after gaining over 274 points or 1.72 per cent yesterday.
The Reserve Bank's intervention and its indication yesterday that it may sell dollars directly to oil companies have aided the rupee rise.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said," the INR started on a weak note only for short while, tracking advances in dollar index which rose it its highest levels since sep 2010. The pair then started gaining strengthening improved risk appetite in global markets over better than expected German consumer confidence numbers and short covering in equity markets". PTI