Rupee hits two-month high

The rupee ended at a near two-month high on Wednesday as banks went short on the dollar amid a growing belief that the local unit will gain further, tracking other regional currencies and on receding war fears.

The rupee ended at 48.9100/9175 per dollar, up from the previous close of 48.9550/9650. The rupee last closed at Wednesday8217;s level on April 22. Traders said the undervalued local currency extended the gains of the past two sessions on steady dollar supplies from exporters and little resistance from state-run banks, which usually act on behalf of the central bank.