The rupee was trading with gains of 78 paise at 1.30 pm IST as global markets rallied and the dollar weakened on reports hat Lawrence Summers withdrew from consideration to be the next chairman of the US Federal Reserve.
The rupee was last trading at 62.66, with gains of 82 paise over Friday's close.
The rupee hit a high of 62.51 against the dollar after markets viewed the Summers withdrawal as good news, since he is known to have a more hawkish stance on monetary policy issues.
His withdrawal means that the markets around the globe including India, expect a easy monetary stance, which is why the Indian rupee rallied in trade.
Meanwhile, most of the markets across the globe were trading with gains after news of Summer. The Jakarta Composite rallied almost 2.5%, while the Singapore's Strait Times was up almost 2%. The Japanese markets were closed for trade today.